Almost all parents can agree that sending a child off to college is an exciting time, but also a stressful experience. Parents who have dedicated the last 18 years preparing for this moment want to make sure their child has everything they need for their first year away from home.
There are several items that should be reviewed before sending your child to college, ranging from establishing good habits and teaching basic life skills to finalizing the college funding plan and discussing any legal needs. To help provide some structure during the preparation phase, we have listed below the eight things every parent should do before they send their child to college for the first time.
1. Consult an attorney on HIPAA, medical forms, POA
You will want to speak to an attorney about a few critical documents that should be executed.
First, you may want to obtain a HIPAA Release Form and Healthcare Proxy (also known as a Healthcare Power of Attorney). Students typically are or turn 18 during their first year in college, which means that parents will no longer have access to their child’s medical records and will not be able to make any medical decisions without these documents in place.
Also, two different types of power of attorney (POA) documents should be considered. First is a durable POA, a legal document that grants someone permission to make medical decisions on your behalf if you are unable to make decisions. The second is a financial POA, a legal document that gives a trusted agent the authority to act on behalf of the principal agent in financial matters.
Additionally, you may want to consider implementing an advanced directive that allows a person to spell out their decisions about end-of-life care ahead of time (commonly used in emergency medical situations). This type of document is commonly referred to as a “living will.”
As each situation is different, reviewing the above items with an attorney can help you determine which documents are needed. But remember, although you may be the parent and paying for this college, the law doesn’t see you as someone who is entitled to access to your child’s records. You will need to prove that to be the case.
2. Review insurance needs for you and your child
There are specific types of insurance that should be addressed when your child leaves for college. First, you should review your homeowner’s insurance policy to determine if your child’s belongings are covered while they are away at college. If not, parent’s may want to consider renter’s insurance if their child will be living off-campus.
In addition, you should review car insurance needs. Will you still need coverage if your child doesn’t drive and will not have a car on campus? Will the child use the car when they return from college and is coverage still needed? These are important questions to ask and plan for.
Lastly, it is important to discuss health insurance coverage. Parents should confirm that their child is covered even when they are away at college (and especially if they are going out of state). Oftentimes, colleges will offer students health insurance at a lower cost and with better benefits, but reviewing all options prior to selecting a plan is recommended.
3. Schedule medical and dental appointments
It is understandable that scheduling medical appointments is often overlooked amid the hustle and bustle of preparing for college. However, arranging these appointments at least one month before the child leaves for college (or when they return on breaks) will help minimize any health surprises in the upcoming months. This is especially important if the child has any chronic medical conditions. In this case, parents will also want to make sure they obtain a copy of their child’s medical records to provide to the school.
In addition, make sure to obtain any prescriptions beforehand as well as copies so that they can be filled while at school if needed. Parents should also make sure their child’s vaccinations are up-to-date, because many colleges will not allow students on campus without the proper vaccinations. You should be able to find information on required vaccines on the college website.
4. Create a budget for spending at college
This is the perfect time for parents to sit down with their children and review finances. If you hand a credit card to a teenager and tell them to use it when needed, the card will soon be maxed out, as they will see many things as a necessity to them. To help avoid this situation, parents should sit down with their child and set a budget so that they are aware of their financial resources before spending happens.
To fund this budget, parents should consider opening a student checking and savings account with a credit union or bank affiliated with the school. Doing so could save hundreds of dollars in ATM fees when withdrawing money at school. If no credit union or bank is affiliated with the college, look for the closest bank to the school for convenience if withdrawals are needed or if account changes need to be made.
5. Review if you qualify for FAFSA (Free Application for Federal Student Aid)
Reviewing the FAFSA form well in advance can be crucial as every college has a certain amount of dollars to fund scholarships. The sooner the form is completed, the better chance there is to qualify for a higher award. There is no reason not to apply as this aid is free money that every student should take advantage of! Not many parents are aware, but depending on the college, the FAFSA form may be a mandatory form that every student must fill out regardless if they are applying for federal aid, state aid, grants, loans, work-study or college-funded student aid.
6. Building credit & establishing good credit habits
Parents should consider opening up a credit card in their child’s name. This can have major advantages for their child in the long run as it will allow the child to start building credit. This can benefit your student because when they graduate college, some employers or future landlords will perform a credit check. In addition, if the child wants to make a large purchase (a car, apartment lease, etc.), having no credit can make it difficult to do so.
Opening up a credit card can also teach smart money habits. Parents can talk with their child about limitations and credit habits to help them understand how their spending impacts their budget. This can also help segue into the basics of personal finance, like the importance of spending less than what is earned, limiting debt, and making all of the required payments on time. By establishing fundamentals now, you can help ensure your child is successful long after she graduates.
7. Add your child as an authorized user
Parents should consider adding their child as an authorized user to their credit card just in case there is an emergency and the child needs access to additional funds. This can have additional benefits for the child such as helping to establish their credit history (especially if they don’t yet have a credit card of their own). Once they’re added to the account (or once they turn 18, depending on the card issuer), the account’s entire history will be added to their credit reports. As long as you use the account responsibly and avoid high balances and missed payments, it can help your child get started on the right foot.
8. Review college funding programs & loan options
In addition to filling out the FAFSA form, it is important to review all types of college funding programs your child might qualify for. Federal student loans are eligible for undergraduate students who demonstrate financial need to help cover the costs of higher education. Applying for scholarships is another great way to help lessen the impact of rising tuition costs. In addition, there are private loans that students can take out themselves and have the parent cosign.
There are also other loan options that parents can consider to help cover college costs such as using a home equity loan, obtaining a secured loan using collateral other than home, taking a loan from an employer-sponsored retirement plan, using a margin loan from a brokerage account, using the cash value from a life insurance policy, and a federal PLUS loan program. A parent is also allowed a penalty-free withdrawal from a traditional IRA for college tuition.
Below is the one-page checklist we share with clients that summarizes these items.
A To-Do List to Prepare Before Children Leave for College
Source: Taylor Financial Group
These eight items above highlight the important areas that every parent should address when their child is leaving for college for the first time. Although it can feel like a lot to tackle all of these items, ultimately it will help reduce stress knowing that everything is in place prior to it being needed. As Benjamin Franklin said, “An ounce of prevention is worth a pound of cure.”