Summer is almost here, and there is still plenty of time to prepare for the new school year. In addition to talking to your children about healthy habits like getting adequate sleep and managing their stress, this is the ideal opportunity to introduce them to money basics to help them build a solid financial future.

1. Budgeting
   Even if your child’s room, board, and dining hall meals are covered, they still need to consider some extracurricular spending. This is where your role as a parent becomes crucial. Together, you can estimate their potential expenses on living, school supplies, and activities. Discuss the amount of money you plan to provide. Will they consider a part-time job or a work-study program? You can also help them strategize on saving earnings from a summer job for additional expenses. This collaborative approach not only teaches them about money management but also makes them feel included and part of the process.
2. Set up bank accounts
   Has your child set up a bank account yet? It’s essential for them to have a bank account from which they can pay bills or access cash, fostering their financial independence. Consider if your preferred financial institution has a branch near or on campus (like UHFCU at UH Manoa!) to avoid unnecessary fees. If you’re considering a credit card, establish clear boundaries on its use. Alternatively, if your child wishes to open a credit card in their name, ensure they understand the importance of good credit habits for their financial future.
3. Car insurance
   If your child is bringing a car to campus, ensure they have their car insurance information and understand their coverage level. You may also receive a discounted rate if the campus is more rural. If your child won’t drive regularly while in college, ask your insurer about discounts, too. Student discounts often apply to college students, particularly if they’ve moved 100 miles or more away, and you may be able to change your child from a primary driver to an occasional driver.

Parents offer differing parameters of financial support during college, but no matter how involved you can or want to be, having your child deal with increasing responsibility will help them become financially independent. You want to transition the money-related decisions into their hands so they are ready to control their finances when on their own.

Reference: https://www.northwesternmutual.com/life-and-money/college-prep-checklist-5-financial-tasks-to-tackle-this-summer/