Before Your Kids Start College, Teach Them a Lesson About Money

* Ways to cut costs. A good portion of that $7,215 is made up of variable expenses that your child can reduce by economizing. Consider books, which cost $600 to $700 a year for the average college student. If your child waits to buy books until classes have started--to make sure he or she couldn't just read the required chapter or two in the library--and then buy used books, that cost could be cut in half.

Also, many students blithely sign up for dormitory meal plans, never looking to see if the plans will fit their schedules and needs. In fact, some of these plans can be a waste, particularly for working students whose schedules might not mesh with the dorm's mealtimes.

Wethor, for example, says that because she worked at a restaurant--where her meals were free--and wasn't around the dorm much, the thousands of dollars she paid for meal plans got used for nothing more than diet drinks.

Of course, a big eater with an accommodating schedule can save a fortune with a meal plan that allows unlimited portions at a set price.

Advise your child to consider the details of the plan and how much he or she will use it before signing up. Simply buying groceries might be a better deal.

* Credit. If your child gets into credit trouble in college, the bad credit history will probably dog him or her at pivotal moments later in life, such as when trying to finance a house or car.

Students are likely to be offered plenty of credit of their own, so make sure your child fully understands the repercussions of charging too much.

And because students are likely to need some type of credit card to handle emergencies, some experts suggest that parents get their child a card that's tied to their own accounts so that they can track--and limit--charging.

"Talk about in what circumstances they'd use the card, when they could use it at their own discretion and when they should discuss a purchase with their parents," suggests Jan Holman, vice president of investment services at American Express Financial Advisors in Minneapolis.

* Health care. If your child is covered by your health plan but will be too far from home to see his or her regular doctor, you might want to investigate which doctors in your plan are near the college.

* Phone bills. Consider getting your child phone cards. Although these prepaid cards don't offer the cheapest rates, most are considerably less expensive than collect calls. Getting phone cards would impose a calling limit on your student. When the money on the card runs out, so does the call.

Send letters to Times staff writer Kathy M. Kristof in care of Personal Finance, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053, or e-mail kathy.kristof@latimes.com.