Important
ToDo's
Before Sending
Your Child
Off to College
By Daniel T. Newquist,
CFP®, AIF®
Daniel T. Newquist, CFP®,
AIF® is a Principal Wealth
Advisor with RNP Advisory
Services, Inc., in Morgan Hill
with over 20 years’ experi-
ence advising clients on their
personal wealth and business
planning needs. Investment
advisory services offered
through RNP Advisory Ser-
vices, Inc. Securities offered
through Securities America,
Inc., member FINRA/SIPC,
a separate entity.
The Investment Fiduciary
standard of care applies to
advisory services only.
[email protected]
or call 408. 779.0699.
40
T
he day has fi nally come. My fi rst born has grown up, graduated from high school and is
preparing to head off to college. The life adventure that lies ahead is charged with a mix-
ture of pride, excitement, and anxious emotion for our entire family.
As his departure day gets closer, we’re focusing on shopping lists and travel plans to deliver
him to school on time. With all the commotion, it’s all too easy for some important tasks to get
lost. So, here are six items that can easily get overlooked.
Create a durable power of attorney
for fi nancial matters and a health-care
proxy.
In most states, you, as a parent, don’t have
authority to make health-care decisions or
manage money for your children once they
turn 18. That’s true even if you are paying
the tuition, have your child on your health
insurance plans or claim your child as a
dependent on your tax returns. Without
such documents in place, if your child is
in an accident and/or becomes disabled,
even if only temporarily, you might need
court approval to act on your child’s behalf.
Consult a legal professional to draft these
documents for you. Gather your child’s passwords to all
digital profi les, including email, school,
fi nancial and social media accounts.
Keep this in a secure place at home and
update as necessary. Your child may not like
this but explain that you are not doing it to
invade privacy, but to protect it in case of
an emergency.
Establish a monthly budget for your child.
It is especially important to set clear
expectations about who will pay for what
expense. Maybe you agree to pay for all
school-related expenses and it’s your child’s
responsibility to pay for all or some of the
social expenses. While this list can help meet certain
financial needs, don’t neglect to prioritize
the emotional aspect of dropping off your
child at college for the first time. This event
can be a special opportunity to connect.
Marshall Duke, a professor at Emory
University, offers meaningful advice on this
topic. He writes:
Set rules around when to use debit and
credit cards.
Educate your child about the difference be-
tween the two and, based upon your child,
decide which is the better option. There
are advantages and disadvantages to each.
If your child is just starting to learn how
to budget and balance their bank account,
beginning with a debit card may be best,
especially for general daily expenses. Leave
the credit card for larger expenses, such as
travel arrangements, and emergencies.
Know where the nearest hospital, urgent
care and 24-hour pharmacy are located.
Find a good local physician in case your
child needs medical attention above what
the college health center can provide. Make
sure your child carries his or her health
insurance card and knows when to use the
credit card versus the fl exible spending or
health savings account card.
GILROY • MORGAN HILL • SAN MARTIN
Talk to your insurance agent about
covering your child’s belongings while
they are living on or off campus.
Insurance premiums associated with dorm
and renter’s insurance vary, but affordable
options with appropriate coverage and
deductible are generally available.
“Such moments are rare. They have power.
They give us as parents one-time opportuni-
ties to say things to our children that will stick
with them not only because of what is said, but
because of when it is said….
This is a moment to tell them the big things.
Things you feel about them as children, as peo-
ple. Wise things. Things that have guided you
in your life. Ways that you hope they will live.
Ways that you hope they will be. Big things.
Life-level things.”.
Duke suggests writing your child a
special note. Mail it, the old-fashioned way.
“It will not be deleted; it will not be tossed
away; it will be kept. Its message will stick.
Always.”
august/september 2019
gmhtoday.com