Ensuring Your Child Is Financially Stable Through College: Three Essential Elements

When it comes to your child leaving home for college, you’ll likely experience a great mixture of emotions. Firstly, you’ll be ecstatic for them – this is a huge achievement, and their years at college will very likely represent some of the most exciting years of their life. 

At the same time, it’s natural to be a little worried. This is likely the first time that they’ll be living on their own, and that carries with it the need to adequately prepare. 

One of the most important elements so far as getting ready for college life is ensuring one’s finances are in check. The financial burden of college can take many forms, so it’s easy for things to mount up and present as a stressful aspect for both parent and child. 

This article is here to help: today, you’ll learn about three important elements for securing your child’s college finances now and for the future!

Image Credit: Pexels

Funding Explained

Naturally, the first thing to discuss is funding for the course itself, and there are many different ways of going about this. 

One of the best things you could set up early on is a college savings account such as a Registered Education Savings Plan, but exactly what is RESPs and accounts like the 529 College Savings Plan? These are special accounts usually set up years in advance that provide tax benefits for students and government contributions. They represent one way of slowly saving over time for your child’s education. 

You also have government funding options such as traditional student loans, and there’s always the option of scholarships and bursaries. The latter are awarded either on a merit or needs basis, so if your child excels at school or you’re going through financial hardship, you should definitely investigate further. 

Estimate Overall Costs

It’s also a good idea to sit down with your child in the months before they attend their course and estimate overall costs. There are many different costs to factor in, such as supplies (textbooks can be expensive), rent, bills, food, and money for entertainment. 

Help them add up the associated costs of each of these elements and work out the best way to save money – this could involve anything from helping them learn to cook cheap meals to buying them a ‘starter pack’ so they don’t have as much to spend when they get there. 

Instilling the Importance of Balance

And finally, it’s important to instill the idea of balance in your child as they learn to manage their finances. You don’t want to stress them out and overwhelm them with all that they’ll have to pay for or suggest an extremely strict budget that doesn’t account for socializing and simply enjoying themselves. 

College is about more than just studying and being frugal – they’re there to express themselves as well as get an education. Coach them through their finances as best you can, but remember to allow them to be independent in their own way, too. 

Wrapping Up

The above points give you a general rundown of how to approach college financing and the options available for you and your child. Once you’ve tackled these major financial hurdles, you should feel a lot lighter, and you’ll that find the excitement between the two of you will start to build. Good luck!