Getting Your Child Through College: Important Financial Considerations

Reading Time: 3 minutes

Your child getting ready for college can be a double-edged sword. On one hand, it’s an extremely exciting time for you and your family. On the other hand, there’s so much to sort out that it can be overwhelming.

Finance matters are among the most stressful aspects to deal with. Costs pile up for course credits, textbooks, and living away from home for the first time. In this article, you’ll learn how to get a head start in organization!

Getting Your Child Through College: Important Financial Considerations

Table of Contents

Securing College Funding

First things first: How will you secure the necessary funding to put your child through college? There are many different ways to approach this. The sheer number of options can become quite overwhelming. It can help to split things into distinct categories.

First up, you have traditional government funding which usually comes in the form of a student loan. This loan is usually repayable at a more affordable rate than traditional private loans.

Then, there are bursaries and scholarships. These are awarded on either a merit or needs basis. They represent free funding for students who excel or those who need the most financial help.

Lastly, you’ve got savings options like a Registered Education Savings Plan, but what exactly what is an RESP? Like other special savings accounts, these offer tax benefits. They also include government contributions to help parents save for their children. They’re a great way of securing some extra funding early on.

These are the main categories, but there are others that fall somewhere in between. Research at the local level to find out if there are any unique schemes available to you. Have your child contact the university where they’re hoping to study to see if there are any special programs.

woman in red coat holding notebooks and coffee cup Getting Your Child Through College: Important Financial Considerations

Teaching Your Child How to Budget

First, figure out how to fund their study fees. Then, start teaching them how to budget for themselves if you haven’t already. Having the course paid for is one thing, but heading off to live in university-based accommodation without finance skills is a recipe for disaster.

Help your child outline the things they have to pay for, such as rent, food, utilities, and transportation. From there, you can show them how to budget properly and track their spending. There are many apps available these days such as You Need A Budget (YNAB) which do a great job with this. Download apps and go through everything with them before they attend.

You may want to explore the option of a part-time job with your child. Make sure it won’t interfere with their ability to study and socialize. Making friends at college is important to!

back view of people walking into a campus Getting Your Child Through College: Important Financial Considerations

A Clear Path to College

Here are some great books to help you and your child prepare for college finances:

There’s a lot to think about when preparing your child for college. If you can get the finance headaches out of the way, the path forward becomes clear and bright. Take your time and be patient. You’ll get through it. Good luck!