When a teenager goes off to college, it can create a very stressful time for the teen and their parents. Many parents know that college tuition will be expensive to pay, but many do not consider the other costs that may accrue while their child is in college. Use the guide below to learn how to properly plan for the financial strain that can come when a child starts college.
Establish a Spending Allowance for Your Child
Your child will need money to be able to pay for some of their daily expenses. They will need to pay for personal hygiene items, gas if they drive, and food if they do not want to eat in the cafeteria at the college. Set an allowance for them to use each month. Be sure to be very specific with the amount and put it into their bank account for them to use so that they cannot go over the amount without your knowledge.
Set Aside Money for Unexpected Expenses
There are times when costs such as books and supplies are not taken into consideration when determining the cost of college. Books can be a few hundred dollars each, so take the time to help your child look for any books they need at a second-hand bookstore. There are many of them near college campuses. Set aside a certain amount of money that can be used to pay for the books or supplies that your child may need along the way. This ensures that they can have what they need when they needed to help them be as successful as possible.
Consider the Bills They Cannot Pay
You need to decide if you want your child to solely focus on school or if you want them to be responsible for their own bills. If you want your child to focus on schoolwork alone, you need to be responsible for their bills, such as their car insurance, medical insurance, and cell phone bill. It is important to plan for these costs when determining how much it will cost to get your child through school if you want to be sure you will have enough saved.
It is best to start saving for your child's college expenses as soon as you can. There are many families who make the mistake of waiting until their child starts college to start worrying about the cost. This can lead to financial hardship and unnecessary stress. To learn more about financial planning, contact a planner near you.