Your Ultimate Guide: College Planning Financial Checklist for Parents

By Brett Gottlieb

Sending your child off to college is a big life milestone. That’s why planning ahead for college is so important to help set them up for financial success.

If you’re a parent, guardian, or family member of a student who’s about to start college, we want to help you get them ready for the adventure ahead. We know it’s key for young adults to understand their financial obligations so they can make the most of their college experience and feel prepared for their futures. Read our following guide to equip them for what’s ahead.

Open a Checking Account in Their Name

Even though apps like Venmo and Zelle make it easier to send money to trusted friends and family members, most financial firms still want payment from a more conventional banking establishment. Think about starting an account in your student’s name at a bank affiliated with the school, or a convenient bank branch, or a credit union. This could potentially also save money on ATM fees.

Have a Conversation About Credit Cards

A best practice to tell your student is that they’re responsible for paying off their monthly credit card balance. Although technically it’s your responsibility as a parent or guardian to monitor credit card balances and make sure the card is paid off every month, your student should be in charge of this. It forces them to monitor their spending habits while helping them develop a strong mindset around money.

Explain Their Financial Aid Awards

If financial aid is part of your college planning picture, explain the award to your child by reading the award letter together. Otherwise, they’re at risk of not being able to utilize the funds. Certain financial aid programs, like the federal work-study program, have specific requirements. For example, if granted work-study, students need to find a job during the first few weeks of arriving on campus.

Create a Spending Plan

You’re in good shape if you already saved in a 529 plan to cover qualified educational costs like room and board, fees, and tuition. But don’t forget about incremental expenses like transportation to and from school, supplies for their dorm room, eating out, buying meals that aren’t included in their meal plan, entertainment, parking, and Uber/ride sharing.

You and your student need to decide on a reasonable spending plan that includes these incremental expenses. This can give them a better understanding of their financial decisions and a realistic picture of their spending before the first semester begins.

Remind Them to Contribute to Their Roth IRA

Make sure your student contributes to their Roth IRA if they have worked in the past or if they plan to work this year. They can start a Roth IRA on their own if they are older than 18, otherwise, it has to be a custodial Roth IRA.

For 2024, the annual contribution can be their earned income or up to $7,000 annually. As a parent, guardian, or relative, you can make a contribution on their behalf and help them get a head start on their long-term financial plans.

Review Your Insurance Policy

Check to see if your insurance policy covers your student’s dorm room or if dorm insurance could be a good idea. Dorm insurance can pay for the replacement of your child’s belongings in their dorm room in the event that they are stolen or damaged. Depending on the plan, dorm insurance is typically less expensive than renters insurance.

Don’t Forget About Healthcare!

Make sure your student has a copy of the policy numbers for your health insurance. Also, get your student’s HIPAA release form and healthcare proxy. College students are already or about to turn 18, which means legally you no longer have access to their health records and can’t make any medical decisions without these documents.

Work With a Trusted Professional

When you need experienced help with college planning or managing your wealth, we aim to help make the process easy for you.

Our team at Comprehensive Advisor has the goal of giving our clients and their families customized wealth management and financial planning strategies for their future. We’re dedicated to optimizing, managing, and supporting the financial well-being of our clients so they can enjoy what matters most.

To get started, email us at info@ComprehensiveAdvisor.com or call (760) 813-2125.

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees, in business administration and economics, and is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals, and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

Our team of qualified professionals have experience in the financial service industry, and our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial strategies for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a comprehensive retirement roadmap to help ensure their assets are preserved and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. Insurance products are offered through the insurance business C.A. Financial & Insurance Services. Comprehensive Advisor, LLC is an Investment Advisory practice that offers products and services through AE Wealth Management LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by C.A. Financial & Insurance Services are not subject to investment Advisor requirements. CA Ins. Lic. #6000262. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, lifetime income, etc., generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.   07/2024 – 02516951