The AIG/EVERFI survey found that only 49% of students plan to follow a budget. That’s down markedly from 76% in 2012. Yet money pros view budgeting as one of the simplest and most useful tools for managing money.
Meet with your adult child and work together to create a realistic monthly budget. It should list all regular, essential expenses and a line for non-essentials — “fun money” — like restaurants and travel.
Joe Duronio, vice president, strategic planning & research for AIG, says, “Especially in this digital age, when it is easy to impulse buy online, a budget helps young adults see where every dollar they earn is going and what funds they really have available to spend.”
Apps like Mint (free) and Acorn ($1 to $3 a month) — the two best for budgeting according to NerdWallet — can help.
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