Parents of seniors have spent much of this year supporting their teens through the college search and application process. Still more hours may have been consumed with financial aid forms and making plans to meet college expenses. No rest for the weary yet—you still need to address the money management issues that will affect your child as he or she gets ready for this next phase of life.
- Set up a bank account. Since your child will have an ongoing need for money at college, you’ll want to be able to easily transfer money to his account. An online bank account may be the most useful, especially if they have special student accounts available that will give parents access to bank information. Find out which banks have ATMs close to campus—college kids usually don’t write many checks. Be sure to check on fees for using an ATM that’s not part of your bank’s network. Those fees add up!
- Make plans to protect student property. College kids tend to have a lot of valuable electronics and computer equipment. Renter’s insurance can protect your investment if these items were to disappear. Your homeowner’s policy may also cover dorm room possessions—check with your agent. A special laptop lock will keep this equipment safe—college kids often don’t lock their dorm doors.
- Health insurance—check out options provided by the college and compare these policies with your family medical coverage.
- Car insurance—once again, check with your agent. If your child will not have a car at college, you may be eligible for a discount on your auto rate.
- Discuss credit card dangers—college students are besieged with credit card offers—discuss how the misuse of credit cards can affect their ability to get credit in the future. Look into debit card options or provide your offspring with a card in your name.
- Decide how much to budget for incidentals. College Board estimates personal expenses at about $3,700/ year. That’s a lot of pizza!
