If you’re the parent of a student heading off to college this year, you’re probably feeling a lot of emotions: pride, gratitude, and maybe even some nerves. You’ve worked hard to get them here, and you want the best for them as they move into a more independent chapter of life. Part of that is making sure they have a basic understanding of their finances. Here are 6 things to talk about with your soon-to-be freshman before you drop them off.
1. Learn about saving and spending
Helping students learn how to budget before college can potentially set them up for greater financial freedom and fewer surprises, giving them a clearer picture of how far their money can go each month. This 5-step guide to learn how to budget can get them started.
If you haven’t already helped them set up a bank account, consider opening one in their name online or in person and getting them a debit card—it can be a great tool for them to learn by doing. Then show them how to check their balance, monitor transactions, and make sure they have enough to cover their expenses.
2. Understand expenses
While it’s key to know what’s included in tuition, food, and housing at their school, it may be easier for your kid to wrap their head around what’s not covered. That’s the kind of stuff they may need extra spending money for (think: public transportation, school clubs, and going out with friends). Planning ahead to incorporate these expenses into their budget may help them make sure they have what they need. Consider talking through a typical semester, highlighting any events like a big game, concert, or friend’s birthday celebration, and helping them work through the numbers so they can get a rough idea of how much money to have on hand.
If your student has a 529 account, they may be able to use it to cover more than just tuition. Some lesser-known uses for 529 funds that are considered qualified expenses include textbooks, course supplies, computers, internet, and expenses to support special needs. Sometimes there are limits or restrictions based on specific school policies, so be sure to research and understand any limitations on qualified education expenses before withdrawing.
Tip: Make sure your child always carries around their student ID. While its main job is to give them access to academic buildings, it can also potentially be used in local stores and restaurants for student discounts. It never hurts to ask!
3. Review how student loans work
Whether or not the loan is in your name or your student’s, it’s important for you both to understand potential repayment options before signing up for a long-term commitment. According to Fidelity’s 2026 Student Debt Report, many student loan borrowers are facing higher levels of stress in recent years and delaying major life milestones, like buying a house or starting a family, due to their student debt.1 Having a strong sense of how your loan works ahead of time could help you feel more confident about repaying it in the future.
While taking out a student loan may sound intimidating, it can be a great way to help afford higher education costs. Unlike other types of loans, your student typically doesn’t have to start repaying the loan immediately, provided they are enrolled at least half of the time in school or within the grace period (normally 6 months) after they graduate. Interest, however, may accrue during these times. Read more about how student loans typically work.
Fun fact: Student loans could even help finance study abroad programs. Contact your child’s school’s financial aid office to confirm eligibility. Since studying abroad can sometimes be more expensive than a typical semester, consider requesting a budget sheet from the University Studies Abroad Consortium (USAC) regarding the specific program your child is interested in to help them plan accordingly.
4. Practice habits to help build and protect their credit
A credit score may not be top of mind for most incoming freshmen, but establishing good credit while still in school could give a student a head start on some of life’s bigger milestones. That’s because a good credit score could help someone get approved to rent an apartment or a lower rate on a mortgage or car loan. Here are a few moves to think about.
- Giving your child a credit card: If it makes sense for your family, consider adding your student as an authorized user on one of your credit card accounts or opening a new credit card in their name. There are numerous beginner credit cards with lower limits designed for those with no or minimal credit history. Length of credit accounts is a factor in how a credit score is calculated, so building credit early can be beneficial.
- Making on-time payments: Payment history is the most significant factor that determines a credit score. This includes all credit card payments but also possibly payments for loans, rent, and utilities. If at any point your student lives off campus, make sure their name is on the lease so they can start building credit—and rental—history.
Tip: Set up autopayments to avoid missing a payment and potential late fees or credit dings—and make sure the account those payments are withdrawn from always has enough. - Committing to healthy habits: Share lessons like “don’t charge more than you can pay,” “treat your credit card like a debit card,” and “pay off the entire credit card balance each month versus just the minimum.” These can leave a lasting impression—and help your student establish a solid financial foundation.
- Prioritizing safety: It’s also important to proactively help reduce the risk of fraud and theft. Teach your student to report any transaction they don’t recognize immediately and to report and lock a lost or stolen credit or debit card.
5. Consider getting a part-time job
About 64% of college students work either part-time or full-time.2 Your child’s finances and overall capacity could dictate whether or not they work. Being a full-time student is time- and energy-consuming, but part-time jobs can help improve various skills—like people skills, work ethic, and accountability. Plus having a steady schedule (as well as steady income) could help them stay motivated, save more, and make progress toward long-term goals.
Depending on their (and your) financial situation, your student may qualify for the Federal Work-Study Program, which can help them secure an on-campus job. That gig may be more flexible and accommodating to a rigorous academic schedule. If your student doesn’t qualify or did not secure a work-study position, there are still other part-time options, especially in today’s gig economy. They could look into becoming a research or teacher’s assistant, tutor, waitstaff, pet- or babysitter, delivery or rideshare driver, personal shopper, or any of these side hustles.
6. Be a smart saver
Saving any money during college may seem unrealistic given how expensive higher education is, but the secret to saving is simple: A little can go a long way, as can stashing cash in smart places. While you may think keeping your student’s money in a traditional savings account is safest, they may actually be missing out on potential growth opportunities.
According to the FDIC, a traditional checking or savings account currently earns significantly less than 1%.3 This is where investing can enter the chat. Whether that’s a brokerage account, Roth IRA, or high-yield savings account, share the potential long-term benefits of investing, such as compounding, when returns earn returns of their own. Because your student worked hard for that money, their money should have the opportunity to work hard for them too. Before they can invest, though, they’ll need an investing account. Flexibility and access to their money can be important for college students, so consider trying Fidelity’s Account Selector tool to explore which account may work best for your student.