Preparing Child For Finance 101

The first year of college can be a tough transition for many students.

In addition to being away from home for the first time, students are learning to juggle new classes and friends, as well as how to manage their money.

This can be a lot to handle for a young student, especially if they have never managed money without the help of mom and dad.

“When it comes to financially preparing your child for college, the sooner parents start the discussion the better,” said Community Bank N.A. Jamestown North Main Street Branch Manager Kathy Bemus. “Many times, parents forget that ‘the basics’ — like how to write a budget or how credit cards work — are not really basic for someone who has never managed their own money.”

Before the summer comes to an end and your child heads off to school, Bemus recommends sitting your college-bound student down and discussing the following money lessons that can’t afford to be skipped:

¯ Establish clear boundaries: If you plan to help your child cover some expenses, make your expectations clear before they leave home. Discuss what expenses they might encounter and what they will be responsible for. Often students forget there are additional expenses on top of tuition, such as books, laundry and living supplies.

¯ Create a budget: Whether you plan to supply your child with extra spending money or not, spend the time to sit down and develop a monthly budget. Help your student plan for unexpected expenses, such as off-campus dinners or a last-minute train ticket home.

¯ Educate about credit: Don’t wait until move-in day to hand over the emergency plastic. Help your child understand what credit is — cover how interest rates are calculated, how debt can affect them and the dangers of paying minimum balances. If you’re planning to let them use your credit card, make clear whether it is for emergencies only or everyday use.

¯ Encourage independence: While providing guidance to your child is important, it cannot go on forever. Remember that your child needs to develop the financial skills and knowledge to manage money on their own. Recommend they get a job for spending money and give them the freedom to choose how they spend it. This can be an eye-opener in terms of how much things cost and teaches responsibility.

Puerto Rico Furloughs OK’d

SAN JUAN, Puerto Rico (AP) — A federal control board overseeing Puerto Rico’s crisis-wracked finances is imposing furloughs for the first time in the U.S. territory’s history.

Board Executive Director Natalie Jaresko said Friday that furloughs of up to two days a month would start Sept. 1 and apply to all public employees except police. She said they will continue until end of fiscal year 2018.

She said Puerto Rico has not achieved $218 million in savings as part of an overall $880 million in savings required by the board.

Gov. Ricardo Rossello did not immediately return a message for comment. He said Thursday he would go to court over furloughs that he said would affect 138,000 employees and lead to a $600 million negative economic impact in the next two years.

US Economy Gains Jobs

WASHINGTON (AP) — U.S. employers added 209,000 jobs in July, a second straight month of robust gains that underscore the economy’s vitality as it enters a ninth year of expansion.

The Labor Department says the unemployment rate slipped to 4.3 percent, matching a 16-year low first reached in May.

Growth in Americans’ paychecks, however, remains stubbornly slow.