TIPS Financial Considerations
for College Students
Sandy Preston, Extension Educator
University of Nebraska Cooperative Extension
So you have a college student. You are probably getting an implication of the cost of college life. It might also be a good time to revisit the financial issues associated with college.
There are some things that you already know about your student. Some of the things to think about as you start a discussion are related to their financial savvy.
a. Can the student stay within an allowance?
b. Has the student had part-time jobs?
c. Has the student been responsible with his own money?
d. Has the student paid any of his own expenses?
e. Has the student ever had his own checking account?
f. Is the student organized enough to reconcile the monthly statements?
Now that the student’s financial savvy has been determined, discuss these financial issues plus others that you may have. Here are some areas you want have a clear understanding of:
Who is going to pay for tuition, room and board, fees, additional expenses?
Parent, student or a combination of the two?
How much can the family afford?
Is the student expected to work? How many hours?
If working, how will the student use this income?
What is the time frame in which parents will continue to pay college expenses?
What will it cost to maintain the student and what is it still costing for the siblings at home?
If the student chooses to marry or live with someone will parents continue to provide support? At what level?
What will happen if the student over spends?
Will the student have a credit card? What are the advantages and disadvantages of credit?
Who is responsible for signing legal agreements like housing contracts and loan papers?
What banking services will be needed? (Credit card, ATM, debit card, checks, etc.) Will this account be at home or near the school?
Some additional planning that you may want to look at with your student:
Think about possible major or educational interests. How long will it take to graduate with the chosen major? What happens if it takes longer than planned.
Set goals with your student, such as: Will an internship be needed (paid or unpaid)? Will the student go to summer school? Etc.
How many hours will be to taken each semester? (Talk to other students, parents and school representatives as to what might be best for your student.)
What are the expectations for grades of both parents and student?
What happens if these expectations are not met?
College is an expensive time for most families. Dealing with the cost of college can have an impact on the education of the student and the retirement savings of the parents. Both goals need to considered when determining finances for college. A clear understanding of expectations is important that goals for both can be met.
To learn more about College Spending contact your local Extension Office and request a copy of College Spending 101.
If you want to leave feedback about this article, go to unlforfamilies.unl.edu and click on TIPS and then feedback.
