Starting college is an exciting yet challenging time for both students and their parents. One of the most critical aspects to prepare for is how to manage college tuition, living expenses, and daily essentials.
For many students, this is the first time they will be responsible for all their expenses, which can be a significant adjustment.
Here’s how you can support your child in navigating university or college finances.
Open Up the Conversation
Simply starting a conversation about college finances can encourage your child to think about their options.
Ask them about their financial plans and educate yourself on current financial aid schemes and policies, such as government loans and their application deadlines. This way, you can answer any questions your child might have and guide them through the process.
Remember that it can be helpful to let your teen do their own research. While it’s important they don’t miss any deadlines, they might not respond well to being told exactly what to do. A key part of the college experience is learning to be independent, so try to guide them gently rather than pushing them.
Supply Helpful Resources
There are numerous online resources available for information on college finances. If you’ve found some useful ones, share them with your child.
Sharing links can be particularly helpful if your child prefers reading over discussing their options. This allows them to learn at their own pace, especially during stressful times like exam season.
Do the Research Together
The transition to college life can be overwhelming, and many students might delay addressing practical issues like finances. Offer to help your child with their research if they want it.
Your experience and input can be invaluable, especially when making significant decisions about their future. Whether it’s looking into loans, scholarships, or savings plans, working together can make the process less daunting.
Offer Plenty of Emotional Support
Even if your child is comfortable handling financial research on their own, emotional support is crucial during this pivotal time.
College involves numerous changes, such as what they’re going to study, finding a place to live, and planning for a future career. Simply being there for your child and showing your support can make them feel more at ease.
Understanding College Funding Options
There are various ways to fund a university or college education. In the UK, students often use student finance if they are studying for an undergraduate degree for the first time.
Eligibility and the amount received can depend on parental income, so exploring grants and bursaries your child may be entitled to is essential if you think the student finance might not cover everything.
In the US, traditional options include 529 savings plans, which offer tax-free growth and withdrawals, and 529 prepaid tuition plans, which allow immediate payments for college. Another option is a Coverdell Education Savings Account (ESA), although it has annual contribution limits.
Federal and private student loans are also available, so exploring all options is critical before making a decision.
If your child plans to study abroad, they may need different funding solutions. Check with their chosen university to understand the available options.
Familiarise Yourself with the Options
There’s a wealth of information on college finances, and your child might appreciate your support while exploring their options.
However, they might also want the freedom to navigate this on their own. Don’t feel discouraged if they haven’t reached out yet. Stay informed about the best financial options so you can provide helpful advice when they need it.
Story: Emma’s Journey to University
Emma, my neighbour’s daughter, was about to start her college journey, and her parents were keen to ensure she was prepared for the financial aspects. They knew this was the first time Emma would be handling her expenses independently.
One evening, Emma’s parents sat her down for a relaxed chat about her plans for college finances. They discussed different options, like government loans and scholarships, and shared a few useful websites they’d found.
Emma appreciated the conversation but felt a bit overwhelmed by all the information. To help her, her parents suggested they look up resources together.
Emma also liked the idea of studying in the US, so when she decided to explore this option, her parents were even more supportive.
They researched what would be needed if Emma decided to study abroad, looking into different funding options for international students and helping her understand the application process for US colleges.
Over the next few weekends, they compared various funding options, examining the benefits of different savings plans and loans. This additional support made Emma’s dream of studying abroad seem much more achievable.
This collaborative effort not only provided Emma with valuable information but also made her feel supported and less anxious about the transition.
As college start day approached, Emma’s parents continued to offer emotional support, reminding her that they were there for any questions or concerns. Emma felt confident and well-prepared, knowing she had both the knowledge and the backing of her parents.
This experience not only eased her financial worries but also strengthened her bond with her parents, making the start of her college journey a positive and reassuring experience.
