COLLEGE Parents must resolve issues before kids leave

Insurance and banking matters need to be addressed.
KNIGHT RIDDER NEWSPAPERS
If you're the parent of a student who plans to start college this fall, you probably are already accustomed to running the financial traps.
Financial aid applications. Scholarship searches. A sudden urgency to tap into college saving accounts to pay the first tuition bills.
But a few other financial issues are equally important and shouldn't be overlooked before packing your child off to college.
'To do' list
Add these to your summer "to do" list:
UHomeowners' insurance: Laptop computers, desktop PCs, stereos, televisions and other expensive gear that your child hauls off to school are typically covered under your homeowners' policy.
However, some policies restrict coverage of items away from home, said Sandi Weaver, a financial planner with Financial Security Advisors in Prairie Village, Kan.
If that's the case, you may need to buy a rider to your policy to make sure the electronics and other personal items crammed into the dorm room are fully covered against theft, she said.
UAuto insurance: You may be eligible for lower premiums if your teen takes a car to college. Some insurers will reduce rates for students attending a school at least 100 miles from home who have a car on campus, said Bert Faherty of Toyne & amp; Associates Inc. in Overland Park, Kan.
Likewise, inform your agent if your student goes to college without a car. Having one less driver for most of the year could lead to a lower premium, though Faherty warns that insurers generally are "backing away" from reducing premiums in this situation.
UHealth care insurance: Your options are your family medical plan or a health plan offered through the school. Your medical plan generally covers your children until they reach 20 to 24 years of age and are still considered a resident of your household.
Many schools, however, offer low-cost health insurance coverage that might be cheaper -- though not as comprehensive -- than your existing plan. The cost and level of coverage vary greatly from school to school. In some cases, school-sponsored health insurance is required and is built into the fee plan.
UBanking: Most schools have banks and automated teller machines on or near campus that can make it convenient to open an account.
These days, however, many families are turning to online banking options, such as Visa Buxx. With these debit cards, parents can transfer money into an online account so their child can make purchases or get cash out of an ATM. Remember to set ground rules on how the cards are to be used and monitored.
UCredit cards: Don't let your student leave for college without a serious discussion about credit cards and the temptations of plastic.
"Sit down with your child and read through an entire credit-card agreement," said Vicky Collins, a Dallas area financial adviser. "Then do some sample transactions -- minimum payments, late fees -- so the student can see how horrible credit-card debt can be."
USpending plan: Talk to your college-bound student about living on a budget, and come up with a reasonable spending plan to cover late-night pizzas, laundry, entertainment, long-distance phone calls and personal items. Then both of you should monitor the budget for a couple of months to make sure it's working and adjust if necessary.