Before any student leaves for college, a discussion about finances is in order.
Below are discussion topics excerpted from Charles Schwab’s On Investing, (Summer 2011), which I’ve expanded upon, that provide keys to being financially savvy both in and out of college. Each section addresses the needs of everyone affected.
Parents or guardians must decide how much they’ll personally contribute to their child’s education. Be realistic about what you can afford for tuition, books, food and housing. Honesty is critical at this point–never downplay your current financial situation. It’s important to draw up a budget, including your child in every aspect of budget creation. Be sure to allow room for “emergencies” or unforeseen expenses, such as tuition or housing increases.