Tips for surviving the financial transition from high school senior to college freshman

Just as students have a checklist of what they need to do the summer prior to enrollment, as well as a checklist of what they should bring with them to campus, there are some money management basics that every new college student should understand and be equipped to handle.

1. Create a spending plan. Budgeting is at the core of financial responsibility, and it is an exercise that most financially independent individuals have mastered. It may take a month or two on campus to develop a good idea of what is offered around a school, so it’s realistic to think that the budget may need to be adjusted. Still, having one, whether it is weekly or monthly, will help students control spending.

2. Work on organizational skills. The key to staying under budget is organization. Students should be encouraged to create an easy to use system to track all of their expenses, transactions, insurance information, and bank and credit card statements. Today, technology makes this easier. Software and apps such as Quicken, Mint, Bill Guard and a host of others allow people to manage all their accounts in one place.

It’s important to remember that although bouncing checks may seem Stone Age to today’s wired kids, overdrawing bank accounts is still very real, and it can be very costly, both in terms of dollars penalized and damaging credit.

3. Discuss student loan obligation. Government loans and grants account for only 60 percent of a student’s borrowing needs; therefore, it is incumbent on parents to help their kids fully understand the terms of these loans. Students should also be aware of deferral options and the option of making payments on interest during the course of their education.

4. Talk about credit. Credit cards are not inherently bad. They can be a good way to provide funds, monitor student spending and build credit. The main thing students should know about credit cards is this: not all offers are the same. Students should compare fees (e.g., annual fees, transaction fees, late fees and over-limit fees) and understand how the card provider calculates interest.

5. Raise awareness about identity theft. According to the Bureau of Justice Statistics, college students are five times more likely to become victims of identity theft than the general public. Simple behaviors like monitoring their credit report, reviewing bank and credit card statements, shredding financial information and ensuring secure online activity can greatly reduce your child’s risk of becoming a victim.

Maria Cancel manages the KeyBank Eastchester Branch.