Congratulations on making it to high school graduation! It’s such an exciting milestone, and heading into the first year of college is going to be a huge adventure for your child.

When it comes to finances, there’s a lot to think about, but it doesn’t have to be overwhelming. Here’s a breakdown of what you can expect and some tips for helping your child manage their money in college:

1. Tuition and Fees

• Upfront costs: Tuition is probably the biggest expense, but there are also additional fees (e.g., lab fees, activity fees, or technology fees). If you’ve received any financial aid, scholarships, or grants, these will help offset the cost. Just make sure you understand how much is covered.
• Payment plans: Some schools allow you to break down tuition payments into smaller, more manageable installments over the semester. Check with your school to see if that’s an option.

2. Room and Board (Housing and Meals)

• On-Campus vs. Off-Campus: If your student is living on campus, room and board are usually included in the tuition bill. If they live off-campus, they will need to budget for rent, utilities, and groceries.
• Meal plans: If your student is on campus they might have a meal plan. Sometimes meal plans cover a fixed number of meals per week or a dollar amount for the dining hall so they might need extra funds for eating out or ordering in.

3. Books and Supplies

• Textbooks: College books can be ridiculously expensive and this cost usually comes up the first few weeks of school. A lot of courses now have online resources instead of traditional textbooks, so your student should be sure to check with their professors.
• Other supplies: Don’t forget about things like notebooks, software for assignments, and other materials that may be needed for classes.

4. Personal Expenses

• Transportation: If they’re not living on campus, they may need to budget for a car (gas, insurance, parking) or public transportation.  If they leave their car at home, check for a potential discount on your auto insurance policy.
• Entertainment & Socializing: There will be plenty of things to do on and off-campus, but it’s easy to get carried away spending money on outings. Help your student set a budget for fun activities (e.g., movies, eating out, shopping) so it doesn’t sneak up on them (and you).
• Health Insurance: Some schools include health insurance in their fees, but not all. If they are not covered through your policy, they may need to sign up for student health insurance.

5. Earning Extra Income

• Part-time job: Many students get a part-time job to help cover costs. They can check with their school for on-campus job opportunities (like in the library, dining hall, or student center) or look for flexible off-campus work. Keep in mind, balancing work and study is important to avoid burnout.

6. Student Loans

• If your child has student loans, it’s important to understand how they work. Be sure to help them keep track of the amount they owe and what the repayment schedule will look like after graduation. For federal student loans, they typically won’t have to start repaying them until after they finish school.

7. Budgeting & Saving

• Track your spending: It can be easy to overspend without realizing it. Help your student set a weekly spending limit that is realistic for them to stick to.
• Emergency fund: It’s always a good idea to have a buffer in case something unexpected comes up.

8. Scholarships, Grants, & Financial Aid

• Apply for scholarships: Even after they’ve started college, there are still plenty of scholarships available. Don’t miss out on them!
• Check in with the financial aid office: If circumstances change (for example, they get a job or your income changes), your financial aid package may be adjusted. Keep an open line with the financial aid office.

9. Credit and Debit Cards

• Credit card management: If they don’t already have one, they may be offered a credit card in college. If they get one, have them try to keep it to a minimum and always pay the balance in full each month to avoid high-interest rates. Building good credit early on can help them in the future.
• Debit card: It’s smart to have a debit card for everyday expenses. Your student will want to be mindful of any bank fees, ATM charges, or monthly maintenance fees.

10. Money Mindset

• Don’t stress too much: Help your child think about how they want to manage their finances in their first year. Setting a weekly spending limit along with their own bank account can be helpful first steps.

With a bit of planning and open conversations about money, you can help your student start college with confidence and set a stage for lifelong financial habits.