College is likely to be the biggest financial expense and challenge of your child’s upbringing. Even if you’ve been saving for years, your family may not be as prepared as you think for all the costs involved in getting a higher education. With your child’s high school graduation just on the horizon, it’s time to make sure you’re taking the smartest financial approach. Proper financial planning can help reduce your stress and prevent you from being caught off guard by the economic responsibility of college. Here are a few steps you can take now. 

Financial Planning for Your Child’s College Years

1. Research Financial Aid Requirements 

Students that meet certain citizenship and economic criteria are eligible to receive financial aid to assist with college expenses. It’s best for families to begin researching their financial aid options and learning about the application process during sophomore year. This will allow you enough time to review the rules and procedures associated with financial aid, evaluate the offers, and gather all the financial documents you’ll need to apply.

2. Explore & Compare College Costs

Before your family can save the right amount for college, you must first understand how much your child’s school will cost. Any educational institution that offers federal student aid is required to provide information on attendance costs. This will give you a good idea what a program will cost after subtracting any financial aid your child may receive. Exploring the value of different colleges will help determine what you can realistically afford. 

3. Start Looking for Scholarship Opportunities

Take the time to help your student find scholarships they’re eligible for. Many families wait until their child’s senior year of high school to start investigating opportunities, but since there are many scholarships available to sophomores and juniors as well, you should start as soon as possible. It’s never too early to start applying for scholarships.

4. Talk About Budgeting & Money Boundaries  

College may be the first time your child is responsible for handling their own expenses. One of the most important parts of financial planning is sitting down with them to create a budget and establish what you each will pay for while they’re away at school. Regardless of how much you plan to support them, it’s a good time to teach them how to be financially independent to some degree. If their school offers a work-study program, they may also be able to save up money for extras such as clothes or weekend outings.

Following these tips will help make the transition smoother when sending your child off to college. For expert financial planning assistance, turn to Nicole Gumm Groseclose Insurance Solutions in Clifton Forge, VA. For more than 16 years, Nicole has been working with parents and students throughout Alleghany County to formulate effective saving strategies for funding a higher education. Regardless of your economic situation, she’ll provide valuable advice and guidance for managing your child’s college expenses. Call (540) 968-1569 to schedule a consultation, or visit her website for more information on the services she offers.