Off to School with the Right Stuff?

Chances are good that you have a college-bound student in your immediate or extended family who will experience the first few weeks on campus, perhaps for the first time. When college students unpack and find their way to classes, the question is: Did they pack the right stuff to protect the investment in their education?

Let’s first consider insurance. If possible, it’s best for college students to stay on their parents’ health insurance plan. The recent health care reform bill helped facilitate this, allowing children to remain on their parent’s plan until age 26. However, it’s still important to research the impact of out-of-network expenses if the student is attending a college away from home. It is helpful to identify health care providers near the school who accept the student’s insurance so the student isn’t faced with researching insurance coverage when sick or in an emergency.

No student goes off to college without his or her prized personal possessions, often including expensive computer and entertainment equipment. Parents need to determine if their homeowner’s insurance will cover property that resides in a dorm room. If the student is living off-campus, it’s important to obtain renter’s insurance.

Whether or not the student takes a car to campus, auto insurance rates can change for parents. When students leave their car at home, reduced rates are often available to cover occasional use of a car on weekends. If a student does take a car to college, it’s important to talk to your insurance agent to obtain coverage for the car and driver in the new location. Given that rates are based on the location of the car, it’s good to know how insurance rates will be impacted.

Hopefully college students also pack their money smarts as they explore independence. All of the knowledge and wisdom you’ve instilled will now be put to the test. Help your student start out on the right track when it comes to money management. Kiplinger has a helpful list of financial lessons for college students.

Perhaps one of the best things college students can take with them is an understanding of how you will support them. Let students know what financial support you will provide and what you expect from them in return. Whether you write a letter or have an in-depth conversation, your college student should understand what you’ll pay for and what is his or her responsibility. Armed with these resources, your college-bound student should be set up for success.