Sending your child off to college is a significant milestone! As you prepare your student to leave home and begin school, it’s critical to discuss money candidly with your student. These discussions can help your family come to terms with the plans ahead and help your student enter a new phase of life. As a financial aid advisor, I know that these 5 college planning conversations are important before your student’s move-in day!
1. Financial Planning and Budgeting:
Discuss the financial aspects of college, including tuition, fees, room and board, and personal expenses. Help your student understand the cost of attendance and the resources available for covering these expenses, such as scholarships, loans, and savings. Teach them basic budgeting skills and encourage responsible spending habits.
You should discuss now how much money you will be able to supply for your student’s living expenses. Keep in mind that you still have to run your own household while they’re in school. You don’t want to rely on credit cards to cover ongoing expenses, so be honest and upfront. This may help your student decide on having a job or not while they’re in college.
2. Setting Expectations for Student Contributions
Have open discussions with your student about what they’re expected to contribute during their school years. This ties directly into topic #1 – budgeting! It’s also important to discuss the plans for who will repay any student loans that are taken during the college years. I recommend having this conversation now – and not waiting until after graduation.
Look at the total amount you are planning to borrow to pay for this college, and then look at student loan calculators to see what future repayment costs might be. If you expect your student to make these payments, say so now, and discuss what impact that will have on their future budgetary capabilities.
3. How to Pay: Financial Aid, Scholarships, and Savings
College isn’t cheap. Make sure that you’re balancing financial aid options (grants, loans, work-study), merit scholarships, and 529 plans. Review upcoming deadlines for financial aid, even once school begins. It is important to complete the paperwork each year so help keep it on their radar. Remind your student that college payment will be a combination of many components so that they are aware of what is really going into this expense.
4. Planning for the Unexpected
No one wants to think about what happens if things go wrong. But, it will be important to discuss the unexpected with your student. Talk about financial contingencies: what happens if aid changes or family finances shift? While no one should be too worried about the “what if’s in life, it is important to know that these changes could impact your student’s financial standing at school. Alternative options, like gap years, transfers, and community colleges are very real possibilities for those what-if situations.
5. Work & Internship Opportunities:
Start conversations about post-college plans early on, including career goals and aspirations. Encourage your student to explore internship opportunities, networking events, and career development resources available through the college. Sometimes these experiences are paid, but oftentimes they are not. Discuss the importance of gaining practical experience and building a professional network while in school – even if it does not pad the wallet.
Some students might have to apply for the federal work-study program, or find a job on their own. While many students can juggle work hours and class time, some students have difficulty achieving a workable balance. They might also need to work during the summer and various breaks, while their peers are enjoying great vacations.
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Bonus Tip: What to do with Graduation Gifts
Graduation gifts are a thoughtful way for friends and family to celebrate your academic achievements, but they can also offer a valuable opportunity to boost your student’s financial health as you head into your next chapter. Whether you’ve received cash, checks, or gift cards, it’s important to have a plan for how to use these funds wisely. Consider building or replenishing your emergency fund. You can also have your student consider using the funds to put towards expenses like books or housing.
Before the first tuition payment is due, take the time to have meaningful conversations with your student about the various aspects of college life. By providing guidance, support, and encouragement, you can help your student navigate the transition to college with confidence and resilience. Congratulations on this exciting transition!!
More about Jodi and College Financial Aid Advisors
Jodi is a FAFSA financial advisor who helps with the financial aid process to help families of college students maximize their financial aid. From completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options, Jodi is a fantastic resource when it comes to student financial aid. Schedule a 15 Minute Power Chat to learn more about finding ways to pay for college.