Financial Steps to Take as Your Child Goes Off to College
As summer comes to an end, that means it’s time for students to go back to school. If you have a student heading off to college this fall, or even in the next couple years, there are a few financial steps you can take now to help your child thrive when they reach their new chapter. We’re here to help ensure a smooth transition for you and your student with these tips.
Open Their Own Checking Account
If you haven’t already, help your student open their own checking account. Starting this new phase of life that comes with more independence is also a great time to welcome financial freedom (and responsibility!). Just like earning their degree, learning financial independence will equip them with skills and knowledge to last a lifetime. By having their own checking account, your student will also have their own debit card, which will allow them to purchase needed school supplies, groceries, and any other necessities.
Use Digital Banking
Once your student has their own account, they can also begin to use our convenient Digital Banking to perform all of their banking needs right from their phone or computer. They can quickly and easily check their available balances so they always know how much money they have in their account, even while they’re on the go. They can also track their spending and saving, and easily transfer funds. Now that your student has their own account, you can quickly transfer money to their account through a Member-to-Member transfer for those times when they need a little extra. You can also encourage your student to enroll in Bill Pay to easily pay their bills online. If your student will be living off-campus and needs to pay the landlord and pay for utilities, Bill Pay is a hassle-free way to ensure all bills are paid on time each month. This way your student can focus on the important things, like studying.
Talk About Budgeting
It’s important to discuss the importance of budgeting expenses and saving money with your student to help them become financially independent. Setting and sticking to a budget will help ensure that your student manages their finances responsibly from the start and set themselves up for success. And learning to save money is a lifelong skill, whether they’re saving up for concert tickets now, or when they start saving to buy a house in the future. Certificates are a great way to kick-start their savings if they won’t need to access the money right away, like saving for a study abroad trip.
Learn About Student Loans
College costs and how to pay for them look different for everyone, so it’s important to understand and explore all of your options to cover these costs. Student loans are just one option of many when deciding the best way to pay for college. There are two different kinds of student loans: federal and private. Federal student loans are funded by the federal government, specifically by the U.S. Department of Education, and require you to complete the Federal Application for Student Aid (or FAFSA) in order to qualify. Private loans can also be used to help bridge the gap between federal loans and/or scholarships and the remaining costs of college. Sit down with your student to go over the costs of college and discuss the available options to cover the costs, including going over the different types of loans and how to apply for them if you both choose that route.
Take Advantage of Student Discounts
One of the best perks of being a college student is all of the student discounts! It’s widely understood that college students have limited funds available, so thankfully a number of business and restaurants – especially those local to the college – offer a variety of discounts for college students. These savings certainly add up, and can really help your student stretch their budget while not having to miss out on fun experiences with their new friends.
Sending your student off to college is an exciting adventure for both of you! Creating a strong foundation for financial knowledge now will pay off in their future. Taking these steps as your students embarks on their journey towards higher education will instill financial freedom and responsibility that lasts a lifetime.
At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.