How to Help With University Without Taking on DebtJul 31, 2018
some, parents may be chipping in to help cut the costs. But the reality is, not all families are in a position to help their children financially with school — not without taking on major debt themselves, or delaying major life events like retirement.
In this podcast, we talk about the barriers parents face when they can’t help students pay for school. Here are a few topics we discuss:
- How to recognise when you need to say “no” to paying those university costs.
- How parents can support their children if they can’t offer financial assistance.
- What parents and kids should know about the different types of financial assistance available.
- What else parents can do to make sure their kids are ready to manage university level finances.
Not being able to help your child pay for their education can be hard for you to accept, but there are other ways you can help them out. Here, we expand on how you can support your university-bound child without taking on debt.
Non-monetary assistance can be a financial lifesaver
Things get pretty expensive for university students. And in high-cost areas like the GTA and surrounding areas, the associated costs like housing and utilities, or transportation, can make it difficult for students to make ends meet.
That’s why offering your child non-monetary help can really help.
If you live near the university they’re planning to attend, offer them housing free of cost. For cash-strapped adults aged 20 to 29, living at home is the new normal, whether in or out of university. Or, help them by co-signing the lease they need.
In addition, help them prepare for the financial realities of university life by reducing the burden of planning alone. Offer them all the sage advice you have on how to save money each month — as a parent, you’ve probably found some tried and true ways to avoid debt. Starting school armed with real-life strategies can be a real relief for your child.
Eva Baker from Teens Got Cents offers some creative tips for saving money while in university that might interest your future scholar.
Model financial boundaries
Be open and honest with your child about your financial limitations as soon as you can. Money can be a taboo topic. If you haven’t already talked about it, you may have very different expectations than your son or daughter.
Knowing why you can’t offer them financial support is an important money lesson in and of itself for your child. Everyone has limitations, and taking on debt is not always a best option. Discuss your financial limits with your child. It’s a good lesson in helping them identify their own limits, which can safeguard them from future debt.
Give yourself some relief by finding different ways to help your child afford university without taking on debt. Help them find the best financial assistance possible and offer them the support you can give without sacrificing your own financial security.