Financial Topics to Address Before Sending Kids Away to College

By 213 Strategic Partners on July 21, 2026

Going to college is an exciting time for students and parents. With all the focus on what to pack, which meal plan to choose, and making sure you enroll in the right classes, financial considerations can accidentally take a back seat. Here’s a quick list of important things to “pack” financially before you drop your son or daughter off at school.

SET A BUDGET

For many students, leaving for college is the first time they’ve left home and the first time away from the supervision of parents. This newfound “freedom” can easily affect how we spend our money. It’s a good idea to discuss a budget with your student before they leave for campus. Think about coming to an agreement on who has responsibility for different types of expenses before you spend the money. For example, maybe you agree that you’ll cover textbooks but ordering takeout or buying concert tickets is on your son or daughter. If you’ll have roommates, similar conversations about shared items for your apartment or dorm can also be helpful. Will one of you bring a television but another pots and pans for your apartment kitchen? Speaking of textbooks, we think it can be a good idea to rent textbooks rather than buy them, or if you’re forced to buy, consider buying used. Textbooks are constantly updated, and old versions lose value very quickly when/if you can sell them back to a bookstore.

SET UP A BANK ACCOUNT AND CONSIDER A CREDIT CARD

Many large schools have partnerships with banks that offer reduced or no fee checking accounts, ATMs, and credit or debit cards. These are often a good deal and convenient for students but be sure to read the fine print to ensure any associated fees are fair. Credit cards offer more consumer protection than debit cards and are a good way for young people to begin building credit history for when it comes time to buy a car or home in the future. However, setting limits and having frank conversations about budgeting before applying for a card can be critical to avoiding unwanted surprises. It’s likely that you’ll have to sign as a guarantor on a credit card if your student is under 21. Some schools have or even require a preloaded cash card for certain transactions like on-campus meal plans or using the dormitory laundry facilities, so be sure to ask.

LEGAL DOCUMENTS YOU SHOULDN’T OVERLOOK

As parents, it’s important to have some critical documents in place before your child leaves for school in the event of an emergency.

1. HIPAA release form: The Health Insurance Portability and Accountability Act of 1996 (HIPAA) can present challenges for you, even as a parent, to receive medical information about your child in the event of an accident. We recommend filling out a HIPAA form specific to the state your student is attending college to ensure you can get access to medical information before you need it in the event of an unfortunate circumstance.
2. Medical Power of Attorney: This document designates you as someone able to make medical decisions in the event your child is incapacitated. Without it, medical decisions would default to a doctor.
3. Durable Power of Attorney: This document designates you as a decision maker when it comes to financial matters and allows you to make transactions on your child’s behalf.

OBTAIN RENTER’S INSURANCE

If your student is renting an apartment or house, it’s unlikely that your current homeowner’s policy covers the belongings your child takes to school. It’s a good idea to obtain renter’s insurance. Because you’re only insuring the items you bring into a rental unit and not the building in which you’ll live, this protection is usually very affordable, and some campus apartment complexes will even require proof that you have a policy as a condition in the lease. You may wish to add on additional riders for specific items that have higher value such as laptops.

Hightower Securities, LLC, member FINRA and SIPC & Hightower Advisors, LLC a registered investment advisor with the SEC. All securities are offered through Hightower Securities, LLC and advisory services are offered through Hightower Advisors, LLC.