Starting college is exciting, but move-in can overshadow important financial considerations for freshmen.
“A college career comes with newfound independence, and for many students, this change comes with a new level of personal responsibility,” says Joe Mason, chief marketing officer of Allianz Global Assistance USA.
One of the first steps incoming students should take, Mason says, is to locate an area bank. Proximity to charge-free ATMs is key, especially if the student is studying far from home.
Allow for parking expenses, as well—many institutions impose fees on students who park on campus, Mason explains. Keep an allowance handy to avoid more costly tickets.
Password-protecting all electronic devices is also important, because it will prevent cyber criminals (on campus and off) from accessing identifying financial information, Mason says.
Look into tuition insurance, Mason adds. Tuition insurance will cover losses should the student have to take an unexpected leave of absence.
“While day-to-day money management strategies are important, it is just as critical to prevent larger financial losses,” Mason says. “Increasingly, parents and students are choosing to protect their college savings with tuition insurance, just as they protect other large investments, such as their homes and cars.”
Eight in 10 financial advisors recently surveyed by Allianz recommend tuition insurance for students taking out loans to finance their college education.
“Safeguarding your tuition investment is a smart financial decision. Even the best students can struggle with adjusting to the demands of a university, fall ill or need to leave school for another unforeseen reason,” Mason says.
Source: Allianz Global Assistance USA