Sending your child to college is a major milestone, and it can be thrilling and nerve-wracking at the same time.

You want them to thrive academically and be financially responsible and self-reliant. But from tuition and housing to books and living expenses, college costs can pile up quickly.

In fact, recent statistics show that the average student loan debt per college student for the class of 2022 was around $40,000.

As a parent or guardian, you can help your child manage their college finances and avoid long-term student debt by teaching them financial literacy.

In this blog, we'll highlight important financial tools and how you can use them to help your child manage college expenses. 

Budgeting

Budgeting is a crucial financial skill that can benefit your child throughout their life. As most college students aren't used to budgeting their own money, it's important to help them get started.

Encourage your child to track their expenses and identify areas where they can cut back. You can also introduce them to budgeting apps that can help make the process easier.

Scholarships and Grants

Applying for federal financial aid is a great way to reduce the financial burden of college life. Encourage your child to research and apply for scholarships and grants that align with their academic interests and goals.

In addition to scholarships and grants, federal student loans are an important resource to consider for college financing. Encourage your child to explore federal student loan options by completing the Free Application for Federal Student Aid (FAFSA).

Do this as soon as possible, as some student financial aid and federal loans are distributed on a first-come, first-served basis.

Part-time Jobs

Encouraging your child to find a part-time job on or off-campus is an excellent way to help them cover their expenses while in college.

Besides providing financial support, working part-time can teach your child valuable skills that can benefit them in their future careers such as time management, teamwork, and customer service.

Student Credit Cards

A student credit card is handy for helping your child manage their finances. However, it can also lead to financial trouble if not used responsibly.

As a parent, it's important to guide your child on student credit cards before they head off to college.

Automatic Youth Savings Accounts

Setting up automatic savings is an excellent way to help your child develop good saving habits and prepare for unexpected expenses.

Talk to your child about the benefits of having an emergency fund and how it will provide a safety net. It'll also help them save for future expenses, such as a study abroad program or graduate school.

When setting up automatic savings, choose a competitive interest-rate account to maximize your child's savings potential.

Student Loans

Private loans are a reality for many college students trying to manage their college expenses. As a parent or guardian, you can help your child navigate the student loan process and understand the consequences of taking out an education loan.

You can teach them to calculate monthly loan payments based on the interest rate, repayment term, and loan amount. This way, they can clearly understand their financial obligations after graduation.
Seeing your child off to college can be a stressful experience but teaching them financial literacy skills and the tools to succeed can alleviate some of that stress.

And helping your child make confident and informed financial decisions can be rewarding. It can also give you peace of mind knowing they are well-equipped to handle their personal finances more responsibly.

Teach them the importance of using credit cards only for essential expenses, such as textbooks or emergency situations, and not for impulse purchases that lead to credit card debt.

Choose Capitol Credit Union!

Looking for financial support for your child's education? Capitol Credit Union can help.

A student loan via CCU’s partners can help your child cover the costs of tuition, accommodation, and other college costs with great value rates.

Additionally, we offer competitive youth savings and checking accounts to help your child manage their personal finance and prepare for the future.

CCU also awards annual scholarships to high school and college students who are current members.

Contact us today to learn more about how we can support your child's financial future.