Survival Tips for Parents of College-Bound Kids

For many years, you savoured that wonderful time of the year when your youngsters went back to school. Ah, the free time ... at last some emotional and financial relief from keeping the kids entertained all summer! But now your bundle of joy is headed for college and you both face new, monumental challenges.

In a recent study by Key Education Resources, 66 per cent of parents are not prepared for the cost of ancillary expenses such as books, utilities, groceries, entertainment, cell phones, computer software, transportation and travel. If it seems as if your only hope of continued solvency is to disown your offspring, do not despair. With planning and creativity, you can both survive back-to-school days at the college level.

If you have been contributing to a registered educational savings plan (RESP), now it is time to put it to use. Here are five tips to help you deal with the first semester:

1. Buy all your child's required texts at the beginning of the semester - Buying books immediately will help your student stay on top of reading assignments and avoid the stress of hunting for out-of-stock books. If the cost of buying new ones on campus leaves you gasping for air, consider buying used ones or discount shopping online.
2. Small Change - If your family tells you how proud they are that Tommy or Susie is college bound, smile sweetly and ask them to get involved. Encourage everyone to gather up loose change throughout their homes - the average household has about $99 in spare change - and donate it to the cause. Equip your youngster's dorm room with a coin jar where your freshman can also save spare change. Apply the money to gift certificates of particular interest to college students, like Amazon.com, iTunes, Eddie Bauer, Pier 1 Imports, Linens 'n Things, Chapters and even Starbucks.
3. Cell Phones - Forego the cost of putting a telephone in your student's apartment or dorm room, since he or she probably already has a cell phone. Parents can pre-load minutes on pay-as-you go plans to prevent unexpectedly large cell phone bills. Plan regular calls home during free-minute times such as evenings and weekends.
4. Credit Cards - Set up a prepaid VISA or MasterCard as their primary money source and limit their credit card to emergency use. Prepaid cash cards teach budgeting and can be set up for rapid money transfer from home. Encourage them to stay within budget, rather than building debt through the emergency credit card. Make sure they are aware that credit card companies may come on campus to solicit business. No matter how good the introductory deal may seem, irresponsible use of a credit card will have them (or you) paying for their largess for years to come.
5. Study Habits - Reduce student stress levels by encouraging your child to establish good study habits such as planning a regular time to study, showing up for every class, using on-campus study resources and not overloading themselves with a heavy schedule. Promote better listening in class by arming your child with a tape recorder. The recorder will help ensure that the student pays attention to the entire lesson and allows the student to focus on key points for later review.

If you have not started saving for post secondary education on behalf of your children, we can help design a savings plan that is appropriate for you.