We have 2 boys in college, one is a freshman and one is a junior. Our deal with both of them is that we will take care of tuition, room and board, for an undergraduate degree. They will be responsible for graduate school if they go that route. We also give them a cell phone and help a little bit with spending money, maybe 1,500-2,000 each. Both boys have been very irresponsible with how they deal with money and have spent foolishly and we can’t seem to get them to understand the difference between needs and wants. They will spend money, and money they don’t have...(credit card)...on things that they should never waste it on at this point in their lives such as itunes, eating out all the time, electronics, video games and expensive clothes. One has racked up over 4,000 in credit card debt and the other one has spent all his savings that was earmarked to get him thru the end of school in the spring. My DW and I are extremely frustrated as to how to deal with this; we have tried everything we can think of to teach them how to be responsible with their finances and we feel we’ve failed. Now we think we have to apply some tough love and let them figure out that THEY have to accept responsibility for their actions. They have to find their own solutions to their personal money problems and we’re not going to bail them out of it this time.
My question is …..How many of you have been in a similar situation and how did you deal with it?
Side bar….Both my DW and I live comfortable but well below our means. We have never carried foolish debt and never credit card debt. We are savers and we always pay cash for what we need and want. We were both divorced early on and the boys are from the previous marriages but we have always been the financial providers and we are the ones who encouraged college and the ones who are funding almost all of it.
My question is …..How many of you have been in a similar situation and how did you deal with it?
Side bar….Both my DW and I live comfortable but well below our means. We have never carried foolish debt and never credit card debt. We are savers and we always pay cash for what we need and want. We were both divorced early on and the boys are from the previous marriages but we have always been the financial providers and we are the ones who encouraged college and the ones who are funding almost all of it.