Financial Planning for College

5 TIPS FOR STUDENTS AND PARENTS

A college education is a significant investment for both students and their parents. With tuition fees, room and board, computers, textbooks and other expenses, it's essential to have a solid financial plan in place.

IT'S TIME TO CELEBRATE

You (or your child) has been accepted to college! Congrats! Hard work, diligence and focus during high school can have numerous benefits beyond just getting into college. It can help develop much-needed skills such as time management, discipline and perseverance that will be valuable throughout life, especially when it comes to achieving financial independence.

SCHOLARSHIP OPPORTUNITIES

Scholarships provide financial assistance that can be used towards tuition, textbooks and other related college expenses. This helps reduce the financial responsibility on parents and makes it possible for their children to pursue higher education. So, where can you find potential scholarship opportunities? Start by perusing scholarship websites such as scholarships.com, collegeboard.com, fastweb.com, bold.org and goingmerry.com. These websites allow students to create profiles and match them with potential scholarship opportunities based on their academic achievements, awards and extracurricular interests.

STUDENT BANK ACCOUNTS

For many, college is the beginning of a journey toward independence. College students are busy juggling classes, homework, school projects and social lives. At the same time, they need to start developing sound financial habits. Budgeting and saving are skills that will benefit students throughout their lives.  Build money management skills by starting a checking or savings account, or both. By having a bank account, students can learn how to manage their finances effectively and avoid common pitfalls such as overspending or accumulating debt.

STUDENT CREDIT CARDS

"Is it a good idea for a student to have a credit card?" This is a common question, and there is no right or wrong answer, as every student and family's situation is unique. That being said, it is important for young adults to start building a credit history, and a student credit card can help them do this. The key is to use the card responsibly and make payments on time. Student credit cards offer unique benefits that can help students establish good credit habits. These cards typically have lower credit limits than traditional credit cards. They may also come with rewards programs that offer cash back or points for purchases made on the card, which can be a great way to earn extra money or save on expenses.

ESTABLISHING GOOD FINANCING HABITS

During college is when many learn firsthand the importance of budgeting, paying credit card bills on time, and saving money. This makes the college years an ideal time to discover how to become financially independent and responsible with finances. Habits that college students should focus on include: keeping track of spending, avoiding lavish and unnecessary purchases, staying within credit limits, and paying their bills on time. Of course, creating a budget and sticking to it is a surefire formula for financial success while attending college.


Published July 2023

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.