Five Points Bank Blog

September is College Savings Month: Helping Your High Schooler Navigate College Costs

According to the College Board, the average annual in-state tuition for public four-year institutions is around $10,000. If your child is considering out-of-state or private colleges, that figure can easily double or triple. And don’t forget, these numbers don’t include room and board!

So, how can you help make college more affordable for your child? While student loans are common, there are several proactive steps you can take together to lighten the financial burden.

Here are some strategies to reduce the amount your child may need to borrow:

Encourage Saving Early: Help your child understand the importance of saving money. Whether they have a part-time job during the school year or a full-time summer position, encourage them to save a portion of their earnings. You can assist them in setting up a high-yield savings account or a CD to earn more interest on their savings.

Explore Scholarships and Grants Together: Scholarships and grants are excellent ways to offset college costs without needing to repay the funds. Work with your child to search for opportunities on websites like studentaid.gov or scholarships.com. Also, encourage them to talk to their school counselor for additional resources and guidance.

Consider the Community College Route: Starting at a community college can significantly reduce educational expenses. Discuss with your child the option of completing general education courses at a community college before transferring to a four-year institution. This can be a cost-effective way to earn a degree.

Promote Enrollment in AP Classes: If Advanced Placement (AP) courses are available at your child’s school, encourage them to enroll. Earning college credits while still in high school can reduce the number of courses (and costs) they’ll face later on.

Teach Financial Responsibility: Now is the perfect time to help your child develop good financial habits. Work with them to create a budget, track their spending, and identify areas where they can cut unnecessary expenses. Learning to manage money wisely is a skill that will benefit them long after they graduate.

It’s normal for both you and your child to feel overwhelmed by the cost of college. However, by starting early and taking these proactive steps, you can help ease the financial burden.

As you embrace College Savings Month, remember that guiding your child in saving and managing expenses isn’t just about affording college; it’s about instilling lifelong financial responsibility.