Sending your kids off to college is one of the most bittersweet moments you are ever likely to face. It is bitter because your kids will be leaving you and the family home, and going off into the world on their own. You won’t see them nearly as often, and you’ll be worrying for the next four years. It’s sweet because it shows you have raised a smart, confident kid who can go off and start making their own way in the world.

The thing is, just because they are leaving your home, does not mean they are still not your babies, and it does not mean that you cannot still help and guide them through life. One of the most important ways you can do just that in their college years, is by ensuring that they know how to manage their money. Here’s how you can do that.

1. Start with a Reality Check

First things first: your kid needs to know that college isn’t just a social experiment—it’s expensive. Sit them down for a frank conversation about costs. Break down tuition, room and board, books, and all those hidden fees (hello, “mandatory” gym membership). Show them how these costs stack up and how much they’ll need to cover each semester.

Bonus points if you throw in a quick lecture on the difference between wants and needs. A textbook is a need. A third pair of trendy sneakers is not.

2. Student Loans: The Double-Edged Sword

Ah, student loans—the necessary evil of higher education. Explain to your kid that loans aren’t “free money” but a serious financial commitment that will follow them long after graduation. If loans are unavoidable, help them explore options with the lowest interest rates and best repayment terms.

Pro tip: Encourage them to borrow only what’s absolutely necessary. That extra loan for spring break in Cancun? Hard pass.

3. Scholarships Are Free Money—Go Get Some

If your kid thinks scholarships are only for valedictorians and star athletes, it’s time for a reality check. There are scholarships for everything—being left-handed, having a killer essay, or even loving Star Trek. Help them scour the internet for opportunities, and make applying a non-negotiable part of their college prep. The more free money they snag, the less they’ll need to borrow.

4. Budget Like a Boss

Budgeting may sound as exciting as watching paint dry, but it’s a must for college life. Sit down with your kid and help them create a realistic budget. Include categories like tuition, books, food, rent, entertainment, and the occasional splurge (because let’s be real—they’ll need a little fun).

Apps like Mint or You Need a Budget (YNAB) can make budgeting less painful. Plus, they’ll feel cool tracking their spending on their phone—even if it’s just $3.75 for another pumpkin spice latte.

5. Side Hustles FTW

Encourage your kid to embrace the art of the side hustle. Whether it’s babysitting, freelancing, or selling handmade crafts on Etsy, earning extra cash can go a long way. Bonus: they’ll appreciate the value of a dollar when they’ve worked for it.

And hey, if they’re entrepreneurial enough, maybe they’ll be the next college kid to create a billion-dollar app. (We can dream, right?)

6. Credit Cards: Friend or Foe?

A credit card can be a great tool—or a financial disaster waiting to happen. Teach your kid the golden rule of credit: never spend more than you can pay off each month. Explain how interest works, and why carrying a balance is a terrible idea.

Help them find a student-friendly credit card with no annual fees and decent perks. Then, make it crystal clear: this isn’t a license to go wild at the mall. It’s for emergencies or building credit—not for “emotional support” shopping sprees.

7. Food: The Budget Buster

College kids are pros at spending money on food. Help them avoid the dreaded “I blew my budget on sushi” scenario by teaching them to cook. A basic knowledge of meal prep can save a ton of money (and cut down on late-night fast food runs).

Encourage them to take advantage of dining hall meal plans, but warn them against overloading on pricey snacks at the campus store. Ramen noodles may be cliché, but they’re also cheap and filling.

8. Rent Wisely

Off-campus housing can be a great way to save money—if done right. Help your kid navigate the rental market, looking for affordable options that won’t leave them living next door to sketchy neighbors.

Remind them to consider utilities, internet, and transportation costs when comparing prices. Oh, and maybe teach them to read a lease before they sign it (or at least run it by you).

9. Books on a Budget

Textbooks are outrageously expensive, but your kid doesn’t have to pay full price. Encourage them to buy used, rent, or even share with a classmate. Sites like Chegg and Amazon are lifesavers for cutting down textbook costs. And if the professor lists a $300 book they’ll barely use, make sure your kid knows it’s okay to ask upperclassmen if it’s actually worth buying.

10. The Perks of Being Frugal

Teach your kid the joy of finding a great deal. Whether it’s student discounts, free events on campus, or second-hand furniture for their dorm, there’s no shame in being thrifty. It’s not about being cheap—it’s about being smart. Plus, those savings can go toward something they really want, like traveling or concert tickets.

11. Emergency Fund = Peace of Mind

Life happens, and having a little financial cushion can make all the difference. Help your kid set up an emergency fund, even if it’s just $500 to start. Teach them to treat it like sacred money—only for real emergencies, not for “I forgot to budget for pizza” situations. The key is to ensure they have something there if they need it, but not to create such a big safety net that they think they can spend with wild abandon and come running to their emergency fund (or the bank of mom and dad) when things get tough.

12. Teach the Power of “No”

Peer pressure doesn’t stop after high school, and college is full of opportunities to overspend that many students find it hard to resist. So, it’s a good idea to teach your kid that it’s okay to say no to a pricey night out or that extra round of drinks, and that actually, doing so is the real sign of maturity, and something that will enable them to have a better overall college experience because they won’t end up running out of money.  Point out that real friends won’t care if they’re skipping the $50 concert to stick to their budget. Plus, they’ll thank themselves later when they’re not drowning in debt.

13. Set Goals and Reward Progress

Encourage your kid to set financial goals, like saving $1,000 in a semester or paying off their student loans ahead of schedule, so that they are not just thinking about blowing their money on parties and new clothes or whatever it is you know they love to spend money on the most! Celebrate their wins with a small reward—maybe dinner at their favorite restaurant or a fun weekend activity. It’s a great way to show that being responsible doesn’t mean missing out on life.

14. Set Up a Roth IRA (Yes, Really!)

If your student has a part-time job, introduce them to the concept of a Roth IRA. Starting early means compound interest works in their favor, and that they will start amassing a ton of wealth sooner, rather than later, so that they will be more comfortable as they get older and have more responsibilities. It’s a next-level lesson in adulting—and they’ll thank you when they’re 60.

15. Be Their Financial Yoda

You don’t have to micromanage your kid’s money (please don’t), but be there to offer guidance when they need it. Share your own financial mistakes and lessons learned—it’s more relatable than a lecture, and if they do mess up, make sure they know they can come to you and tell you about it, and you will work with them to show them what they could do to improve things in the future because the last thing you want is for them to start hiding their financial issues from you, right?

Oh, and it’s fine, maybe even good, to let them make small mistakes now, like overspending on a concert ticket, so they learn before the stakes are higher. A little tough love can go a long way.

Helping your kids be smart with their college finances is one of the most important things you will ever do as a parent to older children because not only will it help them to save their money, and ensure they can get through college without going through extreme hardships, but it will also set them up for a lifetime of greater financial independence, which will be good for them, and good for you and the bank of mom and dad too!