Reyna Gobel, M.B.A.

You want the proud moment when your son or daughter throws his or her cap in the air to be joyous for the whole family, not one signifying the fear of how your offspring will survive financially in the “real world.”

   How do you prevent the landing of a graduation cap from creating a how-am-I-going-to budget thump? By helping your child create a post-college budget now. Otherwise, instead of getting an occasional phone call asking for monetary help, the phone calls will be coming from your basement.

Follow these tips for post-college budgeting bliss.

• Have clear rules about who pays for student loans Often, students think mom and dad will be a never ending source of funds. Whether graduation has happened or is approaching, let them know how you will and won’t help. Research with them payment plans and ways to postpone payments if they have financial difficulties.  
• Lay all debt on the table It’s not easy for an adult child to pull their credit reports and show their parents all their debt, but it’s vital for creating a livable budget, especially a long-term one that reduces credit card and consumer debt. For free credit reports, go to www.annualcreditreport.com.
• Go beyond basic categories such as food, clothing, etc. You need to ask your son or daughter about items that matter to them most such as coffees, going out on weekends or even a paintball hobby. If personal must-haves are included in your offspring’s budget, sacrifices can be made such as choosing a less pricey apartment in exchange for affording hobbies.
• Keep an open line of communication about budgeting. Answer any questions they have about how you budget. Mistakes you’ve made and recovered from can prevent them repeating your mistakes, and teach get-out-of-trouble strategies.  Also, let them now that you open to helping them review their budget if a career change, a new locale or finding a life-long partner happens.
• Ask your child to price out cost of living when comparing job offers. A job that pays a few thousand more in a pricey city can mean a smaller apartment and lifestyle than the lower paying one in a less expensive city.
• Teach them to comparison shop. Comparing apartment specials in the same neighborhood can lead to your son or daughter saving $100 or more per month in rent.
• Make use of on and off campus financial counseling resources. Colleges who have on campus money management offices will counsel alumni, too. Your kids can also turn to credit union financial counselors. Checkout Free Financial Counseling Programs For Students for more information.

For more post-graduation budgeting tips, checkout my new book CliffsNotes Graduation Debt: How to Manage Student Loans and Live Your Life.