You want your child to begin their college journey on strong financial ground.

As your teen approaches their senior year, excitement fills the air. This year is packed with memorable milestones, from prom to sports events and the crucial college decision. Senior year marks the shift from childhood to adulthood, and among the busy activities, crucial financial discussions often get sidelined. It’s vital to prioritize these conversations to set your child up for success in college.

Now’s the perfect time to address key financial topics with your high school senior. This will empower them to embrace financial independence and maximize the investment in their education. We consulted experts to highlight the top five actionable financial steps to ensure your child starts their college experience off right.

1) Understand the financial commitment of their college journey.

A college education is likely one of the largest investments you’ll ever make together. “Discuss the importance of making the most of their college experience and the financial implications involved,” advises a financial expert. It’s not just about grades and attendance; it’s about understanding the value of every dollar spent. Your child needs to grasp the importance of sticking to their budget, which includes cooking meals at home, buying used textbooks, and attending every class. After all, each missed class can feel like a wasted investment.

2) Teach financial skills in relatable terms.

Set up casual lunch or dinner meetings to discuss finances with your teen. Topics could include minimizing debt, creating an emergency fund, budgeting, and safeguarding personal information online. Engage them by framing questions around their future, like what type of housing suits their lifestyle and budget. Approaching financial discussions this way encourages your child to recognize the broader implications of their financial choices and invest in a solid plan.

3) Illustrate the importance of saving.

Encourage your child to view expenses as investments—assess whether each expense meets a need or a want. “For instance, dining out with friends is a want, while textbooks are a need,” explains a financial strategist. Once they cover their essential costs, they should think carefully about how to allocate their remaining funds. It’s essential to save for future goals. Discuss with them how much they should aim to save and share your own experiences with saving for significant purchases to inspire them.

4) Aim to reduce student debt.

Many graduates face the burden of substantial student debt, which can overshadow the joy of starting a new career. For instance, a $50,000 loan could lead to a $555 monthly payment over ten years at a 6% interest rate, a significant sum on a starting salary. If your child plans to take out private student loans, they can use tools to pre-qualify for loans and understand expected interest rates. “Look for lenders offering favorable rates and flexible repayment options,” suggests a financial expert. Also, ensure your child carefully completes the FAFSA to access potential grants and financial aid. If they plan to work through college to minimize debt, clarify expectations regarding hours, job types, and how their earnings will be allocated.

5) Utilize digital tools and apps for easier management.

If your child hasn’t opened a bank account yet, it’s easier than ever to get started. Seek an online bank offering a debit card with no fees for campus use. Many accounts allow you to set spending limits and receive alerts to track their expenses. Explore the latest money management apps like Venmo, Zelle, and Splitwise for handling shared expenses and budgeting. Free budgeting apps are plentiful, including a popular one that helps users manage their finances effectively. Regardless of the banking options or apps you choose, the goal is to boost your child's financial confidence and equip them with essential money management skills before they head off to college. This preparation will bring peace of mind to both you and your child.