Parents: Consider These 3 Things Before Your Child Starts College

Being the parent of a college-age child can be an exciting and scary time. You want to ensure that your child is protected and has everything they need to thrive on their own. Here are some tips to help you navigate this new phase in your relationship with your child.

Legal Protection: After your child turns 18, you may no longer have access to their medical or financial records, and you will not be able to make decisions for them in emergencies. Discuss with them the importance of getting a healthcare advance directive, HIPAA release, and general durable power-of-attorney. A licensed attorney or online legal service will be able to help you navigate the correct documents to complete. These documents will ensure you can continue to be involved in their healthcare and financial decisions if needed. Without these authorizations, you may be stuck going to court to gain access to their records.

Insurance Coverage: Make sure your child will continue to be covered under your homeowner’s, auto, and health insurance policies while they are away at college. Contact your insurance agent and health insurance company to confirm that your child and their belongings are adequately covered, particularly if they are moving to another state. Check that their medical needs will be met by available facilities and that your health insurance covers them “in-network” to avoid costly medical bills. Additionally, ensure that expensive items such as electronics, sports equipment, jewelry, and vehicles are protected.

Financial Responsibility: Consider adding your child as an authorized user on your credit card or help them apply for a student credit card. Teach them the importance of managing a budget and paying credit, rent, and utility bills in full and on-time. Establish clear expectations and boundaries around spending to help them make good decisions and develop a healthy relationship with money and credit cards. Encourage them to work somewhere they enjoy, even if it is part-time, during the summer to learn responsibility around earning and spending money.

By taking these steps, you can help your child launch into young adulthood with a solid foundation and the tools they need to succeed. Remember that communication is key – have open and honest conversations with your child about these important topics and empower them to make responsible decisions. With your guidance and support, they can confidently navigate this new chapter in their lives.

- Kyle McCune, CFP®, Worley Erhart-Graves Financial Advisors