Key Planning for the Youngest in the Family
Sending your young adults off to college, especially when it is for the first time, can be hectic. The focus is usually on getting signed up for the right classes and moving a car load of belongings into a small dorm room. These are really important and the to-do list for setting up your college student for success does not end there. Below are two important items to consider adding to the to-do list for your student.
- Establish a Power of Attorney for Property and Health Care – Although many parents pay for tuition and keep their children on their medical insurance, they are often surprised to find that they may no longer be entitled to their kid’s financial and medical information. Once your child reaches the age of majority (18 in most states) this information may be difficult to obtain which is why Powers of Attorney are so important. If these documents are not in place, then helping to make decisions for a child that may get sick or end up in the hospital is nearly impossible.
- Obtain an annual credit report for your child / freezing their credit – This can be done in just a few minutes, at absolutely no cost. Gaining access to the identity of a child is considered to be the holy grail for identity thieves, as they often can go years without anyone realizing there is something amiss. If you know there is no reason your child is going to need to obtain a line of credit in the next 12 months, then taking the extra step to freeze their credit is a very wise choice to prevent financial fraudulent activity.
For more financial tips for young adults, check out our webinars on Financial Accounts, Credit Scores & Reports, Budgeting & Saving and Investing 101. At Balasa Dinverno Foltz, your team is dedicated to helping every member of the family make sound decisions to enjoy every stage of a full life.
Charlie Murin is a senior planner at BDF. He sits on the firm’s Financial Planning Committee, which is responsible for educating the BDF team on financial planning topics and improving the team’s multifaceted planning process. Charlie earned a Bachelor of Science from University of Illinois, at Urbana-Champaign, in Agriculture and Consumer Economics with a concentration in Financial Planning. He has his Series 65 license, and is a CERTIFIED FINANCIAL PLANNER™ professional.