Cornerstone Bank has been around for over 17 years. During that time, we’ve met a variety of high school and college students, and their parents, who ask our advice about this new time in their students’ lives.
We’re bringing you the best banking advice for parents of college students in Kansas City to help you navigate all of the sometimes tricky aspects of going away to school, and how to make responsible decisions for your college student’s financial health.
Banking advice for parents of college students in Kansas City
Understand your student’s financial needs in college.
College expenses can go far beyond books and lab fees. If your student is going away for school, this can come with a variety of other expenses like activity fees, food, laundry, transportation, and more.
You should consider discussing with them now how to properly budget for their lifestyle (or adjust their lifestyle to their budget!) and how to live within their means when away at school. You can also come up with a savings plan and discuss the possibility of an allowance or a summer job that will allow them to have some extra “fun” money during their first year at college.
Define acceptable behavior for spending money.
Discuss with your student how to prioritize their spending and help them understand that wants are different than needs. After all, this will be the first time in their life they won’t have you around to help them along the way with making responsible decisions with money!
While any excess student loans or scholarships may be tempting to use as fun money, encourage them to keep this money in savings, or to pay the funds directly back to the loan. This will help them in the long run when calculating student debt after graduation!
Clearly define what role you will be taking in their financial life when they start school.
Will you be providing an allowance? Inviting them home for the weekend to do laundry? Or will you be using this time that they’re away to focus on other things like a new job or hobby, or your other children?
Ensuring your student has clear expectations of what they can expect from you (monetarily speaking and otherwise) will lead to much less conflict down the road.
If you are interested in a joint, high interest checking account or to link your account to theirs in order to make deposits when necessary, contact Cornerstone Bank and we can assist you in setting these up in a way that makes sense for your family’s individual needs and circumstances.
Cornerstone Bank in Kansas City is here to help.
Visit us today at our Overland Park branch and meet the bankers who pour so much back into the Kansas City community.