As parents, it is our job to not only raise our children and protect them, but to teach them important life lessons. When it comes to college and finances, they two often go hand in hand. While you may not be able to help your child financially with their college experience, you can take an important role in getting them through college with as little debt as possible.
Guidance
One of the most overlooked aspects of college is the importance of preplanning. Sure your child has a dream college in mind, but it is important to sit down and discuss options long before time to submit applications. First, discuss the overall cost of attending a four-year university compared to starting out a few years at a community college. Second, review grant and scholarship option. This can be a confusing time for high school seniors and they will need your help in reviewing the fine print and details of this process. Take the time to help your child thoroughly search for these programs to help fund their tuition expenses. Last, help your child decide on their best path. Should they borrow a little more and graduate sooner, or is fewer semester hours and more hours working the better financial path? These are tough choices for an inexperienced young adult, make sure to weigh the pros and cons to help them make the best choice possible.
Advice
While part of guiding your child is also advising them, there is something to be said for continued parenting of your young adult. Once kids turn 18 they have a new found sense of entitlement and adulthood, but rarely know what lies ahead. It is important to stay in open communication with your child to gently offer solid financial advice without being too overbearing. If your child is in need of a little extra cash this month to help cover gas and groceries, be willing to help when you can. Helping a little here and there along the way through college can prevent your child from the temptation of credit cards. Be flexible, but also firm. Young adults must learn to stand on their own two feet, so the balance between helping them make a better financial decision today to creating a dependent child can be difficult. Always offer financial tips and reminders of the importance of budgeting to keep your child in tune with their finances, keeping an eye on your money is something all of us should prioritize.