Planning the budget | American Hotel Academy

Before your child leaves home, help him/her know how to deal with their own money. Students have a lot to learn about life on their own. In the same time, they are forced to deal with many challenges in trying to adapt to a new lifestyle away from home. Statistics show that most students come to school with a minimum financial experience. Many students will have to face daily expenses that they didn’t know before. Some of them have problems in managing their own budget in a wise way. Others receive more money that they need, ending-up spending them in a very irresponsible manner. In this case they get to neglect the studies, which will affect them on long term.

• Teach your child how to keep a spending budget and how to plan income and expenses during school. Try not to do things for them, just assist them!
• Be very clear regarding the amount of financial resources that you can provide. It will help you plan next year’s budget and it will allow you to identify other types of income.
• Explain how to build a good credit by paying the expenses on time, avoiding debts.
• Show them how to save in case of an emergency and how to use credit cards wisely.
• Encourage your child to ask questions, seek help when needed and learn how to manage life on their own.
• Do not provide students with more money that they need.
• Trust them as adults, give them permission to put into practice what they have learned regarding managing their own money.

Explain to them about credit cards. Being away from home, for the first time, the student cannot figure it out how little shopping or expenses can add up. Precisely because of this reason, many students have large debts. We encourage you to talk with your student about credit cards and how not paying on time can cause lots of problems. Many students have misconceptions about credit cards. When they are used wisely, it can be beneficial, especially in emergency situations. It is important to help students understand the terms of the credit limits.

Living away from home: money issues

Managing their own money can be for most of the students a big source of stress. It is difficult to suddenly live within a budget if you haven’t done that before. If students are more informed, they will avoid spending more than they need. Help them to establish their plan. If you are providing financial aid, we recommend that you offer only the amount of money needed to cover one month to another.
Be in contact with them and be available for in case they need to ask for help or for information that will help them managing their money. During the academic year, your child may feel dependent on money. Banks advertise quickly the possibility of offering, in an easy manner, loans. In most cases the terms of these loans can become a burden. It is better to consider other alternatives for borrowing money.

Maintaining daily payments

The student has some financial obligations ever since the school begins. Losing control of payment terms results in an excessive accumulation of payments often culminating with students giving up school. Therefore we believe that students should be responsible for paying daily duties. Parents have an important role here in educating and informing students about the consequences caused by excessive accumulation of payments.
What does the school about it?
Our school aims to empower its students and treat them as adults through several ways that students are expected to understand and to comply with:
• Setting deadlines for payments related tuition fees
• Respecting deadlines in that they cannot get access to courses or exams if they don’t meet those requirements
• School accepts applications for postponing certain payments that are reviewed by a committee that can approve them or not, depending on the situation
• Individual counselling