College Students and Money (3)

Now that you’ve paid the first semester’s tuition bill, you can sit back and breathe a sigh of relief, right? Brace yourself, you’re about to face the ultimate college financial crisis: sending an 18 year old off with a book of checks and access to credit. To avoid a call of "Help, I’ve fallen into credit card debt and can’t get out" don’t let your kids leave home without knowing the family’s financial "aid" policy.

Plan ahead for incidentals. Figure $2,000 for 2 semesters or ask the school for its recommendation. If you think your child would be overwhelmed by managing, dole the money about monthly and take care of as many expenses as you can in advance. Stock up on shampoo for example, or get a flexible meal plan that allows for late night snacks. Make sure your student contributes from summer earnings or jobs during the school year.

Source: Bodnar, J. (1999, September). Making cash king on campus. Kiplinger's Personal Finance Magazine, p. 116.