It's that time of year again when parents and students will soon be strapping up the backpacks, packing their lunches (and maybe even their suitcases) to get ready for another school year.  How ready you be for the financial challenges and adjustments that lie ahead?

Here's a checklist for parents and some tips for students to consider as they prepare for another school year.

For Parents

• Have you budgeted for the back-to-school expenses - they add up (books, clothes, computers, etc.)
• Have you started to plan for your children's post-secondary education? Have you explored your options - do you understand the distinctions, pros and cons of the various investment strategies?
• Beyond tuition, are you aware of and factoring in the various additional costs - such as those associated with out-of-town living expenses if your kids go to school away from home?
• Beyond the "how much" cost factor, have you sorted out the logistics of how to assist with your children's out- of-town living expenses (e.g. lines of credit, credit cards, cash, other) - which makes the most sense for your family's situation?
• Have you included your children in the financial planning process by delegating some of the financial responsibility to them to teach them valuable lifelong lessons in managing their finances? Do you know how best to do this?
• Have you integrated the financial planning for your children's education into the bigger picture of your family's own evolving and multifaceted financial planning considerations? How does this impact your retirement planning? Your tax obligations? Your vacation budget? Your overall family goals?

Tips for Students

• First time away from school?  Don't let this new freedom cost you your education. Learn to budget and handle the financial responsibilities early on or you'll find yourself back at home faster than you can say "outta money!"
• Planning to go out of town for your university education?  Start planning early and learn about the costs of going away to school. It's not just the tuition and books; there's entertainment; food; travel; laundry; and other living costs.
• Got a loan?  Learn the financial planning implications of student debt, and learn how to become debt-free faster.

From a media release by FPS Canada - August 14, 2007

Link:  www.fpsccanada.org

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