by Melissa Brock | Jul 1, 2024 | College Money Tips |
If your child has just graduated from college or the date is approaching, you (and they) are likely excited and nervous about what comes after. As I’ve advised hundreds of families on preparing for college, I can also give you a few tips for after they get their AA or BA — tip number one is to take a deep breath.
Both of you can absolutely do this.
Here are some college graduate finance tips to deal with debt, uncertainty, and the world of personal finance. The sooner they start planning their finances, the sooner they’ll be planning trips, new car specs, and, hopefully, decor for their own home.
1. Invest in Financial Education
You know dealing with your finances takes a lot of skill, and you want to help your kid deal with the anxieties of starting out. From learning about budgeting basics to understanding money management as a long-term practice, these skills can build confidence. Here are some financial education resources to take advantage of:
- Books: Start with Suze Orman’s classic, The Money Book for the Young, Fabulous and Broke or Cary Sieagal’s Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live By.
- Online courses: Direct them towards online courses on personal finance through platforms like Coursera or Khan Academy
- Finance blogs and podcasts: Point them to reputable financial blogs and listen to podcasts that focus on budgeting, saving, investing, and other financial topics.
- Workshops and seminars: If you find a link to financial literacy workshops and seminars offered by community organizations, schools, or local banks, share it with your kid. (If you think they’re interested, of course.)
2. Educate Them on Managing Student Loan Debt
CollegeMoneyTips has all the resources for handling student loan debts for parents and graduates, so check out articles on home equity loans and other financial tools such as refinances.
The rest is up to your child. Make sure they understand the terms of their loans, including interest rates, repayment plans, and grace periods. Here are some basic tips:
- Consider consolidating or refinancing loans for a lower interest rate.
- Make extra payments when possible to reduce the principal balance faster.
- Check out income-driven repayment plans with Federal Student Aid.
3. Build Good Credit
If your child has student loans, there is one more reason to pay them on time: building good credit. A good credit score can help them secure a loan, rent an apartment, or get a job. According to Experian, the average American has a score of 715, but anything over 670 is considered good. For starters, they can even have a fair credit score.
Besides paying student loans on time, teach them about other ways to build a solid credit score:
- Getting a secured credit card, using it for small purchases, and paying off the balance in full each month (you can help them with this).
- Paying utilities and other bills on time (and using automated payments in their banking app to do this)
- Encouraging them to monitor their credit report, check for errors, and make sure their credit history is accurate.
4. Build an Emergency Fund
I understand the economy isn’t really helping young adults leave money aside each month, but that does not mean they should give up on saving altogether. If your child doesn’t use change rounding apps or automated transfers to save, there’s a simple starting point.
With time, they should be able to save for at least three months of living expenses, which is considered a minimum emergency fund. It’s a lifesaver in case of unexpected medical expenses, repairs or additional certification opportunities.
5. Prepare the Ground for Future Homeownership
I know, they’ve just started and may be in debt, so even broaching the topic of homeownership with them may feel like you’re getting ahead of yourself. Still, preparing for it ahead of time isn’t such a bad idea. Stats show the youngest generations have particularly poor financial literacy skills, so try to motivate your child with a clear goal.
Here is what you can talk to them about:
- Student loans: Student loans impact people’s borrowing power significantly, but they do not stop them from purchasing a home. They do affect eligibility, though: debt impacts everyone’s debt-to-income ratio, which is a key requirement. While the ideal DTI is 36%, some lenders allow DTIs of up to 50%.
- Researching mortgages: With low-to-moderate income, they can go with government loans such as FHA loans. If they’ve been in the military, VA loans can help them get a home without a down payment. For homes that are a bit more expensive or young adults who have been gifted down payments, a conventional mortgage (that is, a regular loan not insured by the government) may be a better choice as it may have lower interest rates.
- Co-signers: If your child has a steady job and a regular income, and they’re set on buying a home sooner, you or another family member can help them qualify by being their co-signer.
- Assistance programs: As a first-time homebuyer, they have the right to plenty of federal- and state-funded down payment assistance programs.
Finally, if you want to get them a highly useful gift, you can always schedule a talk with a certified financial advisor — they will help them reach their goals, whether it’s paying off student loans, buying a home, building savings or even investing (time is the magic ingredient that makes investments grow!).
And last but not least, congratulations to you and your child for making it through college.
by Melissa Brock | Jul 1, 2024 | College Money Tips |
Construction careers can be a viable option for new graduates. Whether you’re looking into a residential or commercial market, the population continues to expand, and new businesses continue to open, giving this type of career the potential for a secure future. Knowing the ins and outs of construction businesses can also be beneficial for a variety of related careers or help you to start your own business.
1. Consider the Different Trades and Choose Your Interest
Within the construction industry, there are many different trade opportunities. Specialized skills are in demand and essential for helping all the different elements of residential or commercial buildings come together. Trades to consider under the construction umbrella include drywall, electrician, insulation, roofing, carpenter, heavy equipment operator, plumber, HVAC tech, mason, glazier, painter and many others. If you’re just starting out, you may initially find work as a general construction laborer or as a laborer in a specific trade area.
General programs at community colleges or tech colleges may have programs related to a specific industry or trade. Trade-based programs like construction could help recent grads to build financial stability.
2. Obtain an Apprenticeship to Hone Your Skills
You may already have certain talents or skills that will help you be successful in a specific construction trade area. However, gaining an apprenticeship is where you’ll really dive into the specifics of a trade and learn all the ins and outs. There are different standards for various trades, and work is inspected in order to ensure it meets codes and requirements. Specific businesses may also have different processes and methods for the way they approach their trade. Some may specialize in doing things a certain way or having a specific quality control process, for example. You may work with a hiring agency, individual businesses, or local trade schools to find an apprenticeship.
3. Continue to Grow Your Skills at a Reliable Company
Once you’ve apprenticed, you’ll have a solid set of skills under your belt. You may find regular work with the same company you apprenticed with or make connections among other trades and quickly find a steady job that helps set you up for financial success. One of the most popular niches in construction is working in estimating services construction and takeoffs. Finding a solid company can be important in order to have an employer that values your skills.
Since construction trades can sometimes have busier and slower seasons, it’s also important to know what to expect in terms of pay. Know whether you’ll be paid hourly, per job, or with a salary. Hourly and per-job rates can fluctuate depending on how busy the season is, but overtime may be available in busy times which can help strengthen your income. As you grow your skills, you may also be able to get work with additional responsibilities or move up in the company.
4. Take Additional Courses or Learn About Intersections of Tech and Construction Trades
As you gain your knowledge and skills, take additional specialized coursework or learn how tech can be used in more traditional construction trades and how it can provide more value and opportunities. If you’re interested in sustainable building practices, a career involving solar photovoltaic panels might be a good option. If you have strong organizational skills as well as good construction knowledge, working as a construction project manager may be in the cards. There are also college degrees, such as engineering or construction management, that are related to the construction industry and could be worth considering.
5. Consider Starting Your Own Construction Business
While working for a good construction company and doing specialized trade work can provide excellent opportunities and financial stability, for some, the option of starting their own business becomes the ultimate goal. A construction business will take knowledge, networking, and skill, but can offer a massive number of benefits and new challenges. Contractor’s licenses are typically necessary to operate your own construction business, and there are varying categories depending on the type of construction you’ll be doing. Know that there are differences when it comes to licensure in different states. North Carolina contractor license requirements, for example, require people to be at least 18 years of age, complete the exam for the specific licensure type, and meet the minimum financial requirement based on the limitation of the license. In SC, people must pass the appropriate exams and have at least two years of work experience for the requested certification. Learning the requirements for your area can help you know what to expect.
Construction Careers Can Help You Have a Successful Future
For recent graduates who are interested in building, renovating, or trades, a career in construction could be a smart solution. Growing in skills and learning the ins and outs of specific trades can help you get the financial stability you need and grow a career you love. If you’re interested in starting, you may also find overseas construction jobs on Jooble.
For college juniors, checking into how a trade like construction could help build financial stability as well.
by Melissa Brock | Jul 1, 2024 | College Money Tips |
Graduating from college is an exciting stage of life. You have a new adventure ahead as you consider your professional aspirations and what the rest of your life may look like. Maybe you have some serious plans with a significant other as well.
As you consider how the rest of your life will play out, one thing to consider is where you will live. Whether you are open to any city with a job or have a specific state you have fallen in love with, you will need a place to call home. For many recent graduates moving out of their student accommodation, the dream of owning a home may become a reality in the near future.
However, getting ready to own a home is not as simple as it sounds. Homeownership comes with a lot of responsibility, and when you are younger, this might be more responsibility than you want. That does not mean it is too early to start planning for the future. Here are some tips to consider if you want to go for buying a house as a new grad one day.
Start Building Credit
Welcome to the age of credit scores. As an adult, you will find that your credit score has a significant impact on your life. A credit score is used to assess how reliable you are as a borrower, specifically in terms of paying back debts. Debts that affect your credit score include student loans, car loans, credit cards, and home loans. The higher your credit score, the easier it will be to qualify for financing options when you enter the market for a house. The sooner you start building your credit, the better. Make sure you keep up with all debt payments. Always pay the full amount owed rather than just the minimum. Keep your credit balance utilization rates low, and consider becoming an authorized user on a credit card owned by someone who is financially responsible, like a parent. These steps will help you build a strong credit history and demonstrate your financial responsibility to potential lenders.
Find Strong Economies
Choosing the right place to buy a home is key to successful homeownership. As a recent graduate, you are probably on the hunt for a solid career if you don’t have a position lined up already. While homeownership could be a few years off, it is never too early to consider how local economies affect the housing market. For example, should you look for jobs in the tech sector in Charlotte, North Carolina, since the growing economy is great for young professionals? Is it better to shoot for a state with a low cost of living but strong economic metrics, like Texas or Michigan? Are FHA loans in Idaho easier to buy a house with because of an ideal job market? When you think about eventually buying a home, look for areas with positive economic outlooks.
Save for a Down Payment
One of the biggest obstacles to homeownership is the down payment. When you buy a house, most lenders will require a certain percentage of the home’s price to be paid upfront. For a conventional mortgage, the recommended amount is 20%. While other financing options will allow much smaller percentages, there are also closing costs to consider. If you have not already started saving money in college, building up a significant down payment can take a while. Start budgeting for the upfront costs of homeownership early so you can make smart financial decisions today.
Take on More Responsibility
Owning a home sounds like a dream to many college graduates. The space is yours to do what you want, and there is more privacy from neighbors, which you may have seriously lacked in college. However, homeownership comes with a lot more responsibility. There is no landlord or RA to help handle maintenance issues. If repairs or upgrades are needed, those burdens fall on your shoulders. Some homebuyers may not be ready to take on all the tasks associated with caring for a home. You may not even have the time to do all these chores, what with a new career beginning or taking online courses to save money for the future. Make sure you are prepared for the hard work required to care for a house before you think about buying one.
Is a Home Part of Your Dream?
Not every recent college graduate is interested in buying a home. Often, young professionals crave the flexibility of renting or having roommates to save money and keep their career options open. However, someday, you may desire the investment opportunity and privacy of your own home. Planning for that eventuality now is the best way to prepare for it. Think about how you can build your credit score, save for a down payment, and put yourself in the best position to become a successful homeowner in the future.
by Melissa Brock | Jun 13, 2024 | Ask the admission office |
Here’s one of the most important questions you can ask: When to start visiting colleges?
You may have no earthly idea when you should start. Should you get a jump start freshman year in high school? Is that crazy? Too early? Or should you wait till junior year? Is that too late?
I think junior year is the best time to visit campuses, but I also like to see visits throughout high school, not just trying to cram it all in junior year! I spent 12 years in college admission and I also trained our admission tour guides, so I saw many families zip in and out during the spring.
Let’s walk through the timing of college visits, its importance, the ideal time of year to go on a college visit and a whole host of other things to consider.
Importance of College Visits
You know college visits are important, but what might be trickier is what you’re looking for. In my opinion, you’re looking for two important things:
- Campus atmosphere: How does your student feel when he or she is on campus? Comfortable? Stressed? Challenged? While it sounds nebulous, a “feeling” can help guide your child to the right choice for them. The campus atmosphere, understanding campus life, and getting a feel for the friendliness of people counts for a lot in making a final decision.
- Information about the campus: Aside from “feelings,” you’ll also scope out facts about the campus itself: student-to-faculty ratio, required courses, programs and majors (like considering the pros and cons of being a financial advisor by investing smart or becoming a teacher due to your love of kindergarteners), research opportunities, housing, dining, safety, facilities, costs, location, admission requirements and more.
Getting that perfect balance of intuition and insight often requires a little structure. That’s why many families turn to resources like OnCampus College Planning, which helps parents and students approach college visits with clarity and purpose. With guided strategies for choosing schools, building visit schedules, and knowing what to look for, families can make every campus tour more meaningful and less overwhelming.
When should you start visiting colleges? The time of year you visit and the timing of your visit can affect those two things.
Ideal Year in School to Start Visiting Colleges
Let’s go through the pros and cons of visiting colleges throughout high school. There are pros and cons to visiting colleges throughout each year of high school, and it’s important to recognize the benefits of visiting colleges freshman through senior year!
Learn more: Once you understand when to start college visits, learn how to set up a college visit.
Freshman and Sophomore Years
Let’s take a look at the pros and cons of visiting colleges in the early stages of high school for your student.
- Pros: You can help your child get early exposure to college and can start envisioning what the process will look like.
- Cons: Your child might change their interests and goals over the next three years, so any interest in the initial colleges and universities might fade away. Your child may also not be mature enough to understand the benefits of visiting colleges at an early age, but that depends on the individual. It’s a good idea to consider whether your child can handle college visits this early in high school.
Junior Year
Junior year is the optimal time to visit colleges if you’re asking, “College visits when to start?” because students have more defined interests and goals. However, there are some pros and cons:
- Pros: Juniors typically have defined goals and interests at this point in high school and can usually articulate some ideas of what they might want in a college and also what they might enjoy doing for a career. Visiting during junior year also gives them plenty of time to visit colleges, because they can do it over the summer and during senior year as well.
- Cons: Juniors are usually busy this year in high school, so it might be a challenge to find a time to visit. They might also have a limited perspective on majors at this point (or change their minds often!). For this reason, it’s a good idea to turn to Papersowl writing service for academic support. They can help with writing assignments, editing papers and managing workloads. Some students may also feel early pressure to make decisions about where they want to attend college, which is unnecessary at this stage.
Senior Year
Senior year offers final opportunities to visit before applying to colleges. You can usually take advantage of specific events for accepted students, which can also help with finalizing decisions if necessary.
- Pros: The largest benefit of visiting colleges during senior year is that your child is the closest they’ll ever be to knowing their major interests. That makes visits worth the wait, because they’ll be more zoned in and clued into what they want.
- Cons: The major downside is that there is so much going on during senior year, between college applications, homework, senior year activities, athletics — the list goes on. Squeezing in college visits may seem next to impossible.
Ideal Time of Year to Visit Colleges
Some families overlook time of year when trying to figure out when is a good time to start visiting colleges. If they have an open day in January, they say, “Let’s go!” But trust me, visiting a college during a snowstorm will color your student’s experience forever. I remember a student from Florida visiting when the temps were in the negative digits on our campus — he never came back. (But then again, it gave him an idea of what it would look like to live on campus during the winter months, so we weren’t hiding anything from him!)
At any rate, it’s still a good idea to look at the weather for a few specific reasons.
Learn more: Are college tours free?
Spring and Summer Visits
Spring and summer visits invite warmer weather and more flexible schedules, but the downside is that there are fewer students on campus, so you miss out on typical academic year activities, such as more robust classes or events on campus. So, the pros and cons:
- Pros: Warmer, flexible
- Cons: Fewer events and students
Some schools organize special summer programs that let prospective students explore campus life in unique ways while also providing academic enrichment. Another option is to consider online summer courses for high school students offered by Silicon Valley High School, which can help prepare students academically while giving them flexibility in their schedules. Taking advantage of both in-person and online opportunities can give families a more complete view of what to expect from the college experience.
Fall Visits
There’s nothing better than crunching through the leaves on a crisp, blue-sky day in October — especially on a gorgeous college campus.
College campuses bustle with students in the fall and offer a realistic view of academic and social life. The downside is that it’s a busy application season and it can be tougher to balance school and other commitments when you visit then. Here are the pros and cons in a nutshell:
- Pros: Lively campus, realistic view of academic and social life
- Cons: Busy season; might get more personalized experience in the summer
Winter Visits
Things slow down during the winter months on campuses, but you’re also risking the potential for running into bad weather and experiencing limited outdoor activities, such as football games. Do you like to ice skate through your college visit? (Ha!)
- Pros: Quieter; can see what the campus is really like during a potentially chilly time
- Cons: Potential for bad weather
Ideal Day of the Week to Visit Colleges
Fridays and Mondays are the most popular days to visit campuses, for good reason — they butt up to the weekend. Fridays are the all-around most popular day to visit campuses because you might tap into a day off of school here and there. When I worked in admission, Fridays in the fall were crazy. The admission counselors and tour guides hopped from one student meeting to the next, hardly able to stop for lunch!
If you can visit during the middle of the week, you might benefit from more personalized attention on an individual campus visit, more so than you would on a Friday!
Ideal Time of Day to Visit Colleges
What’s the best time of day to visit college campuses? During a lazy afternoon or a busy morning?
Let’s take a look, but first of all, it’s important to understand that many visits last longer than just an hour or an hour and a half. Many might span the full morning and part of the afternoon, depending on what you choose to do while on campus. If you’re doing a tour, meeting with the admission office and financial aid office and eating lunch on campus, your student’s visit will span the morning and early afternoon.
However, if you have just a few things planned, let’s look at which is the most beneficial.
Morning Visits
If you arrive bright and early, you have the benefit of attending morning classes and observing the campus energy in the morning. Many colleges and universities tend to slow down in the afternoon as students finish up their classes for the day, so you can see how the campus “wakes up.”
- Pros: Launch right into the hustle and bustle; can observe campus energy
- Cons: Can be a busy time to visit campus
Afternoon Visits
Slower and more leisurely afternoons on some campuses might be exactly what the doctor ordered, particularly if your child is more nervous about the college search. If they need to be eased into the college search process, you may want to take advantage of meeting faculty and students and exploring extracurricular activities in a calmer setting. It seems like afternoons on campus are the juxtaposition of crazy mornings.
- Pros: Often seem calmer
- Cons: Things may be wrapping up for the day
Evening Visits
One of the most important things to note about evening visits is that colleges don’t schedule visits in the evening. However, you can spend the night on campus, and you can schedule that with an admission office.
- Pros: Can experience the dorm life and social activities
- Cons: Cannot book traditional college visits (unless you arrange to spend the night with someone on campus to check out the residence halls and student life
Learn more: How long are college tours?
Factors Influencing When to Visit Colleges
You’ve probably noticed that there are a few teensy problems with trying to fit college visits in, and that almost always has to do with your already jam-packed schedule — yours and your child’s.
Let’s take a look at some of the factors standing in your way.
Academic Schedule
Your child’s school likely gives them a few excused absences for college visits (the standard is usually three days) but they likely can’t just pick up and leave whenever they want. Therefore, it’s important to consider the optimal time to go during the school year. Consider utilizing school holidays for visits, unless, of course, the college has that time off as well.
Time visits around exams and project deadlines, in-season sports and other types of challenges that might get in your way.
College Calendars
What do colleges and universities have on the docket? Align visits with college open house events and visit when students are on campus for a realistic experience. Visiting when students are on winter break can lead to a lackluster experience, because college campuses look so… dead… during winter breaks.
Personal Factors
Is your child actually ready to visit campuses? A student questioning his ability to turn in every single assignment on time might not be mentally ready to consider colleges. Or a student worried about what it might look like to live off campus might not be emotionally prepared to consider college yet.
Again, the family schedule also plays a role. If you’re super busy with work or only have two personal days off during an academic year, you may really have to plan on how to make college visits work.
How to Plan When to Go for the Ideal College Visit Experience
Whether you’re concerned about organizing your college experience around your activities, the high school calendar or even the weather, you can do a lot to ensure you maximize your experience. Here’s how.
Step 1: Decide your optimal year.
Will you visit early or late? Spring of junior year or summer before senior year? The best advice is to visit when your child has a clear idea of their interests and potential major. Here’s a great plan, in a few steps:
- Spring semester junior year is the optimal time to visit because students typically have a clearer idea of their interests and future plans.
- Students can use the summer before senior year to do additional visits to narrow down choices before applications.
- Students can do a final visit senior year before application deadlines.
- Seniors can also attend admitted student days to make a final decision about which college to attend.
Is it okay to wait until senior year to visit colleges?
In short, yes. If your child has no clue about their major or what they’d like to do in the future, opting for fall or the summer before senior year visits may make sense. However, it’s important to consider when applications are due, so this process is likely ideal for schools with rolling admissions only. It might not make sense to attempt waiting till senior year to apply to schools with early applications, like MIT.
Step 2: Decide your visit period.
Decide the best times of year and specific dates when colleges are in session. Try to work around fall and spring breaks because you won’t get a full experience of the college campus when students aren’t there. Also, try to avoid midterms and finals. You may not know when those will occur, but a quick call to the admission office can give you an idea.
Next, look at your child’s school calendar for potential visit dates. Check into school holidays and weekends. Don’t forget to check the weather!
Finally, look at your family schedule. Where are soccer games and volleyball games interfering with the general schedule? What can you miss? Where can you absolutely not take work off?
Step 3: Decide the time of day that works best.
Naturally, the time of day you plan to visit depends a lot on your travel logistics. If you get to a college late at night, the most logical step is to schedule your visit for the next morning. If you must drive two hours to get there, your best bet might be to arrive at 10 a.m. to give yourself time to drive.
Whatever the case, add flexibility to your schedule and always consider the possibility that you may visit a campus again!
When is the Best Time to Start Visiting Colleges?
When is the right time to start visiting colleges? It’s a time that aligns with your schedule, your child’s year in school and even aligns to the time of day that works best. It’s important to carefully plan, and try to do it early.
Need help creating a visit schedule? College Money Tips can help you do that! Email [email protected] for assistance scheduling a comprehensive visit schedule for your student and family.
FAQs
Still have FAQs about when to start doing college visits? Let’s tackle ’em.
What age should you start doing college tours?
I love this question because it’s such an important question when considering when to start making college visits. So many families feel in the dark. They don’t want to feel left behind and they also don’t want to start early. You can start doing college tours at any age, but the ideal timeline is to get started during junior year.
Is sophomore year too early to visit colleges?
Absolutely not. If you have a child who is gung-ho about college visits, start them! It’s fun to take advantage of the excitement with younger students, but remember that it’s possible that they might forget the details of individual colleges by the time they’re seniors.
How early is too early to look at colleges?
I remember working with students in junior high on group visits, and I thought that was too early when considering when to start doing college visits. They honestly didn’t grasp the finer details of what college was about, such as having a “minor” and how classes worked. However, if you have a junior high student and a high schooler and they’re interested, by all means, allow them to tag along on your older child’s visits!
by Melissa Brock | May 10, 2024 | College Money Tips |
A college education is essential to career development and lifelong learning, but there’s no denying that it can be a costly investment, especially with tuition, fees and accommodation becoming increasingly expensive every year.
Our previous post guides parents through ways to reduce college costs, such as taking advantage of dual-enrollment programs to give kids a headstart in transitioning to college while also saving money on tuition for a few courses or even an entire semester.
However, beyond tuition and boarding costs, one of the essential college expenses to prepare for is health care. How do you. handle college student health care?
Financial services company Bankrate estimates that medical care costs can reach up to $2,500 per year, with the costs being higher if your child needs prescription medication or medical services not covered by the campus health centers. Since health and wellness significantly influence academic performance, below are ways to prepare for and meet your kids’ health care needs in college while still saving money for other essential expenses like technology and emergency funds.
Your Options for Health Care Coverage
What exactly are your options for health care coverage?
- Parent health insurance: Your child can remain on your health insurance plans until they turn 26, thanks to the Affordable Care Act. This option provides coverage for a wide range of medical services and is often convenient for students.
- University health plans: Many universities and colleges offer their own health insurance plans specifically designed for students. These plans typically cover services provided at the university health center and may include options for both on-campus and off-campus care.
- Government programs: Undergraduate students with low incomes may qualify for government-sponsored health insurance programs like Medicaid. Eligibility requirements vary by state, so check with your state’s Medicaid office to see if your child will qualify.
- Private health insurance: You can also purchase private health insurance plans if your child doesn’t qualify for coverage under parent insurance or through their university. Private plans offer flexibility in choosing providers and coverage options but may be more expensive.
- Health insurance marketplaces (ACA): Through the Affordable Care Act (ACA) marketplace, undergraduate students can explore and purchase subsidized health insurance plans based on their income level. You may want to look into this if your child doesn’t have access to other coverage options.
- Student health centers: Most campuses have on-campus health centers that provide basic medical services to students at low or no cost. While these centers may not replace comprehensive insurance coverage, they offer convenient access to care for minor illnesses and injuries.
- COBRA coverage: Undergraduate students who recently lost coverage under a parent’s health insurance plan may be eligible for COBRA continuation coverage, which allows them to continue the same coverage for a limited time period. However, COBRA can be expensive as the individual is responsible for the entire premium.
Get an idea of all your options and compare costs and coverages so you know which works best for your child. Understand enrollment deadlines and other factors so you don’t lose out on any one type of coverage, including university coverage.
Review Your Child’s Current Health Insurance Coverage
Young adults stay under their parents’ insurance plans until age 26, but it may not be the most ideal if your child moves to college out of state and can’t stay covered by the plan’s network of care providers.
Ensure you understand the details of their coverage so you can compare it with campus health plans, which can cost an annual average of $2,924 for public universities and $3,874 for private schools.
These school-sponsored plans can be more affordable than getting health insurance through the marketplace and help you save money by lumping the price of on-campus care with tuition and fees.
Consider Additional Coverage
If you choose to stick to your child’s current plan, then at least consider additional coverage, such as vision insurance, which costs an average of $95. Considering college students are at risk of eye conditions like computer vision syndrome and myopia due to increased screen time and online learning, vision insurance can help reduce out-of-pocket expenses for routine eye exams and corrective eyewear. Fortunately, many optical retailers, including the budget-friendly Eyebuydirect, accept vision insurance even when you order glasses online for new or updated prescriptions. While the platform already provides stylish and affordable frames starting at $6, the cost savings from insurance can help your child afford additional protective features like blue light filters while still staying on budget.
Look into Online Health Services
Health-related expenses can also rack up easily if your kids attend school outside of your home state, whether it’s due to kids traveling for routine care or their insurance coverage being geographically limited. Fortunately, online health services are a viable option for saving time and money while still getting them the quality care that they deserve.
In the same vein, considering money transfer apps can significantly streamline students’ financial management, essential for managing tight budgets and ensuring timely payments for various services, including health care.
Given that more than 60% of college students meet the diagnostic criteria for at least one mental health problem, virtual health providers like TimelyCare can make mental health services more accessible to college students. The platform partners with over 300 institutions worldwide and provides up to nine free scheduled sessions of counseling and therapy every year.
In addition to these money-saving tips, instill healthy habits and choices into your kids’ daily lifestyles, such as eating well and sleeping on time. Continue to check in as they settle into college life, and you’ll find that the transition will be smooth and stress-free. Continue reading College Money Tips for more helpful resources.
