Financial Mistakes to Avoid When Sending Kids Off to College
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What is the main topic discussed in this episode?
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Here's your money briefing for Tuesday, July 18th. I'm J.R. Whelan for The Wall Street Journal.
What are the most common hidden costs families overlook when sending a student to college?
College is expensive enough, but families sending kids off for their freshman year often find themselves racking up costs that have little to do with tuition or room and board.
But you really, really need to set clear expectations for what their spending will be. It's very easy to say the food's disgusting or I just feel like having something else and then buying a pizza every night. And not only is that probably not healthy for you, but it's also just it's a lot of extra money that a family could be shelling out.
We'll talk to Wall Street Journal contributor Cheryl Winokur Monk after the break.
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For parents, sending children off to college can be one of the largest expenses they'll face. Wall Street Journal contributor Cheryl Winokur-Monk joins us to discuss common financial missteps some families and students make.
How should parents set expectations about food and everyday spending with their college student?
So Cheryl, whenever we talk about families and managing budgets, it often starts with a conversation about money. What should parents discuss with their child before they head off to college?
Pretty much everything. And I don't mean to be flip in that respect, but you really, really need to set clear expectations for what their spending will be. College is a lot of money. And I just saw a study saying that a lot of parents aren't expecting it to be as much as it actually is. Food is a big area. For example, let's say as a freshman, you're on a three meal plan a day program. It's very easy to say the food's disgusting or I just feel like having something else and then buying a pizza every night. And not only is that probably not healthy for you, but it's also just it's a lot of extra money that a family could be shelling out.
So costs besides tuition and room and board and food, those expenses are usually well-known. They might play a part in what school a student selects. But what other expenses do students and families often overlook or underestimate?
Transportation is a big one. Even my own family, we sort of didn't really think about that. My daughter is going to be going to a school out of state like every time she comes home for Thanksgiving, maybe other holidays, maybe just a visit during the year. So we're going to have to have a conversation about expectations and say it's expected that you're going to come home at Thanksgiving and winter break, but you're not taking 10 unexpected trips home during the year because it could be multiple hundreds of dollars each time she's doing that. College kids still buy books. Sometimes you can get them online, although you do have to be careful of online scams because there are unfortunately scammers out there who prey on students.
But also sometimes you can get them used at the bookstore even or share them with someone, although that's also sometimes a risky strategy if the person isn't as diligent about sharing as you are.
Which transportation and travel expenses do families often underestimate for out‑of‑state students?
The other issue, computers. So someone was giving me an example of they bought their daughter a new computer and the computer broke or was dropped or something like that. So, I mean, yes, there's insurance. Sometimes it works. Sometimes it doesn't. But you just have to be careful of those other little things.
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Chapters
6 chapters
1
What is the main topic discussed in this episode?
0:00–0:41
2
What are the most common hidden costs families overlook when sending a student to college?
0:41–1:59
3
How should parents set expectations about food and everyday spending with their college student?
1:59–3:50
4
Which transportation and travel expenses do families often underestimate for out‑of‑state students?
3:50–5:30
5
How can students save on textbooks, and what are the risks of buying books online or sharing them?
5:30–7:19
6
What precautions should parents take when adding their child as an authorized user on a credit card?
7:19–7:58
Speakers
3 identifiedMore from WSJ Your Money Briefing
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