adminRequest additional details for “fundamental Steps and Strategies for Prepping Your Kids for a Healthy Entry to Campus Life.” College is a defining moment for youngsters.
When financial consultant Leah Ingram was preparing to send her oldest daughter to college, she was surprised to see health insurance included in the tuition statement. “I couldn’t understand why we were being charged $1,500 for insurance when she already had coverage,” remarks Ingram, the author of the upcoming book The Complete Guide to Paying for College. By submitting proof of insurance to the college, she saved $12,000 over four years.
Ingram discovered that while many college preparation checklists highlight dorm essentials, they often overlook valuable practical advice. Therefore, she created her own list to help families transition into this new stage smoothly, both emotionally and financially. Here are some lesser-known tips to consider before the semester kicks off, which could even save you some money.
Fundamental Steps and Strategies for Prepping Your Kids for a Healthy Entry to Campus Life
Assess Financial Needs
Ingram recommends establishing a budget with your student that covers essentials like groceries, clothing, and textbooks, as well as discretionary expenses like entertainment. Consider setting up a joint checking account so they can monitor their spending habits. “Using a debit card will make their expenses visible, and you can check in on their financial activities as they learn to manage their own funds,” she advises. Additionally, obtaining a credit card for your student can teach them about money and credit management, as well as provide a safety net for emergencies.
Verify Health Requirements with the Doctor
“Many universities require additional vaccinations beyond what high schools typically offer,” Ingram explains, emphasizing the importance of checking the health requirements for your child’s college. “It’s also wise to set your child up with a local pharmacy for their prescriptions,” she adds.
Plan for Security
To reduce the chances of theft, try to leave behind valuable items such as family heirlooms, jewelry, and high-end electronics. Ingram recommends investing in a safe that is “compact enough to fit under a bed yet heavy enough to deter theft.” However, accidents can happen, and standard homeowners insurance may not fully cover your student’s belongings. Since there may be limits on personal property coverage for students living off-campus, Ingram suggests considering a renters insurance policy for extra protection.
Cut Costs on Supplies
One important piece of advice from Instagram is to avoid using shopping lists provided by retailers. “These lists often include unnecessary and overpriced items,” she notes. Additionally, household appliances are usually not allowed in dormitories, so students should coordinate with their roommates to avoid bringing duplicate items.
Review Your Auto Insurance
Given that car insurance rates and risk factors vary by state, it’s essential to contact your insurance provider to prevent any gaps in coverage. Be prepared to provide details about your student’s college, where the vehicle will be parked, and the effective date of these changes. Depending on the situation, it might be more beneficial for your child to obtain their own auto insurance policy.
It’s also crucial to evaluate whether your current insurance provides adequate coverage for your child. When a student leaves home for college, it can affect your coverage in several ways. For instance, if your student will primarily reside at a different address, notify your agent within 30 days of the move to ensure comprehensive coverage. In some instances, you may even end up paying less.
Auto Insurance for Students
Parents should reach out to their insurance agent promptly when their child on their auto policy begins college. Different states have varying rates and risk factors. A representative can assess your specific situation and advise if any modifications are necessary. Be sure to communicate where your child is enrolled, where the car will be parked for most of the year, and when these changes will take effect. Be ready to answer the following questions:
- Is the student enrolled full-time or part-time (12 or more credit hours per semester)?
- Does the student reside at home, in a dormitory, or off-campus?
- Will the student commute to school using the vehicle, and what is the distance each way?
- What state does the student consider home?
- Is the college more than 100 miles from home?
- Where will the vehicle be parked most of the time (on-campus or off-campus)?
- Will the car be driven or transported to its college destination?
Alternatively, your child can consider obtaining their own auto insurance policy.
Renters Insurance for Students
In today’s world, a student’s first home away from home is often filled with valuable items like laptops, smartphones, tablets, and wireless speakers, comparable to what they have at their parents’ residence. Because of the portability of these devices, theft on college campuses is a significant concern. While many homeowners insurance policies cover electronic devices away from home, your child’s choice of college housing—whether on or off-campus—could impact that coverage. It’s advisable to contact your insurance agent for confirmation.
Since there may be limits on personal property coverage for students living off-campus, securing a renters insurance policy could be beneficial. If your child is bringing numerous high-value items to college—like jewelry, sports gear, or musical instruments—consider additional coverage, as homeowners policies often have cash limits on certain types of valuables.
Umbrella Insurance for Parents
It’s normal for college students to have a little fun, and you may want extra insurance for peace of mind. As your child is still considered a dependent, you can be held liable for their actions, even while they are away at school. Thus, an umbrella insurance policy could be advantageous.
Homeowners and auto insurance policies come with limits when a claim is made. Once that limit is reached, the umbrella policy activates, offering additional coverage that ranges from $1 million to $10 million for liabilities such as accidental injuries to others or property damage. For instance, if parents face legal action due to damages their child causes in an apartment, a standard homeowners policy typically provides around $300,000 in liability coverage, while an umbrella policy allows for a customizable higher limit. Should someone pursue legal action against your child, an umbrella policy safeguards your assets and, in extreme cases, could prevent you from financial ruin due to a lawsuit.
While additional coverage may result in higher premiums, it’s often better to be over-prepared than under-prepared.
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