Sending your student off to college is a thrilling milestone, but it comes with financial and logistical loose ends. From managing bank accounts to securing insurance, proactive planning ensures your student thrives without unexpected hiccups. Here are a few key steps to set them up for success while keeping their finances and belongings safe.
Power of Attorney
Once your student turns 18, they’re legally an adult, so parents can’t access their medical, student accounts, or financial records without permission from their child. Executing a power of attorney (POA) allows you to act on their behalf in emergencies, such as managing medical or financial issues. The advantage is quick action in crises—like handling a healthcare emergency from afar or resolving an urgent need for cash—without delays. However, it requires trust, as it grants significant control, and some students may feel it limits their newly established autonomy. Balance your ability to step in with respect for their independence by working with a lawyer to draft a simple POA or complete a template from an online provider applicable to your state, making sure both parents have access to the paperwork that has been signed, filed, and executed.
Banking Basics
Well before your student heads to college, make sure they are aware they will be unable to use cash apps such as Venmo and PayPal to pay their bills. Review their access to a checking account and if needed, open a new account in their name. Many national banking brands prevent non-account owners from depositing cash into accounts as part of their money laundering and fraud protection guidelines. It is easier to quickly deposit funds into your student’s account if necessary by banking at the same brand and being a listed account owner. Ensure your student’s bank offers fee-free ATMs on campus or nearby to avoid extra charges. Banks like Ally or Capital One with broad ATM networks or fee reimbursements, are solid choices. Teach your student to use mobile banking apps to monitor spending and prevent overdrafts, keeping their finances in check while they’re away.
Insurance Essentials: Car and Health
If your student is taking a vehicle to campus, confirm your existing car insurance covers their vehicle at the college location. Contact your insurer to adjust policies, especially when students leave their wheels at home or during a semester study abroad. Keep a physical car insurance card in the vehicle’s glovebox for easy access during traffic stops or accidents, and store a digital copy in their phone’s wallet app for backup. Also, ensure your student has a copy of their health insurance card. Digital copies on their phone are convenient, but a physical card prevents access issues during medical visits—essential when they’re far from home or if they are tragically separated from their mobile device.
Online Access to University Accounts
Parents should secure online access to their student’s university account to monitor tuition payments and deadlines. FERPA (Family Education Rights and Privacy Act) governs access to student accounts. Even if your funds are footing the tuition bill, FERPA blocks your access unless granted by the student. Most schools, like those using platforms such as ProPay, Banner, or Ellucian, allow parent logins with student consent, ensuring you can track bills, view grades, or manage financial aid updates effortlessly. Students can also grant access to a secondary user, their Daily Money Manager, who pays their tuition through the online college portal. Check with the university’s registrar to confirm access setup. This keeps you in the loop while empowering your student’s independence.
Tying Up Loose Ends
If your student used a storage unit over the summer, ensure the final balance is paid in full and the rental contract is terminated to avoid late fees or auctioned off belongings. Consider leaving high-value items, like precious jewelry and electronics, at home, where they’re safest from loss or theft. This simple step helps protect their belongings and avoid heartbreak, allowing them to focus on their college journey. By planning ahead, you’ll send your student off with confidence.
At Organized Instincts, our daily money managers help families navigate financial and logistical preparations for students heading to college. Contact us today to discover how we can support you in ensuring your student’s financial security and independence.
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