July 21, 2025 Renter
Money 101: A parent’s guide to prepping your college student
As the school year kicks off, many parents are helping their college-bound students settle into dorms or campus apartments, often for the first time with full financial responsibility. But are they truly prepared to manage their money wisely? Here are a few tips to help make sure they are ready to manage their finances with confidence.
Mastering online banking basics
Many of us have been using online banking for years, and it has become second nature. But does your college student know the basics? Before they leave for college, make sure to sit down together to set up their online banking profile and to ensure they understand how to:
- Balance their account
- Spot fraudulent charges
- Deposit checks electronically
- Pay bills online
- Transfer money between accounts
Bonus tip: Remind them to never access banking information on a computer or smart phone when they are on unsecured wifi and to password protect both their phones and computers in case of theft.
Navigating in-person banking
Even though banking is done largely online, there still may be occasions your college student finds a need to access a physical branch. Help your student feel confident by:
- Visiting the bank together to show them how to use deposit slips and speak with tellers
- Demonstrating how to use the drive-thru and ATM
- Reviewing ATM safety:
- Avoid using ATMs alone at night
- Never write down PINs
- Be aware of surroundings
- Put cash away immediately
Money-Saving Tip: Remind them to avoid ATM fees by using in-network machines or withdrawing enough cash for the week.
Building a budget that works
For many college students, budgeting is a new responsibility. Sit down together and:
- Create a realistic monthly budget that includes:
- Rent and utilities
- Groceries and dining
- Cell phone and car expenses
- School supplies and personal spending
- Use a spreadsheet or budgeting app to track expenses
- Emphasize the importance of saving—even small amounts add up
- Encourage smart shopping habits like using coupons, buying off-brand, and shopping sales
Understanding credit without the pitfalls
The average college senior will rack up roughly $4000 in credit card debt before they graduate. Many college students think you can build credit by racking up this debt, which is not exactly the case. Teach your student:
- To use no more than 30% of their credit limit
- To pay off the balance in full each month
- To never treat credit as extra income
- To understand interest rates and annual fees before applying
- That applying for multiple cards can hurt their credit score
Pro Tip: Sign them up for a free monthly credit score service (many banks offer this) and show them how to read and monitor their credit report.
If they suspect fraud, AFI members can call 1-800-255-6792 for help from a personal advocate. AFI also provides free Identity Theft Advocacy Services through CyberScout, including fraud detection tips and updates on cyber threats.
Making smart student loan decisions
Deciding whether to take out student loans is a deeply personal choice that varies from family to family. It's important to have open conversations with your college student about:
- the different types of loans available
- how interest rates work
- what repayment will look like after graduation
Encourage them to come to you before making any decisions about borrowing, so you can talk through the pros and cons together and make an informed choice that supports their future without creating unnecessary financial stress.
Protecting belongings with Renter Insurance
Are your college student's belongings protected while they are off at college? Renter insurance can protect your child's electronics, furniture and other belongings from theft, loss or damage while they are off at college. Learn more on why your college student needs a renter insurance policy
Are you an AFI member? Contact your AFI agent today to see if they will be covered under your current policy, or if they might need a separate, affordable policy of their own. Helping your college student build strong financial habits now can set them up for a lifetime of success. With the right tools and a little guidance, they’ll be ready to manage their money with confidence and avoid common financial pitfalls.
Armed Forces Insurance: your trusted renter insurance advisor
Armed Forces Insurance has been a trusted advisor to American armed forces service members for more than 135 years. We’re not a giant corporate skyscraper full of slick insurance executives. We’re a small company headquartered just down the road from Fort Leavenworth in Kansas. We know each other, and our customers know us. If you’re looking for a someone you can trust to shoot you straight and help you protect your home and property, check out our renter insurance page.
Learn more about renter insurance:
Your Renters Insurance Guide (Insurance Information Institute)