Ten financial mistakes parents don’t want to make in paying for college

There are several ways to pay for college -- saving money, earning money and receiving money - and chances are, you and your student are thinking about all of them. Even once the tuition is paid, living expenses loom, but by planning well and ahead, you can show your student how to save and spend money responsibly.

Heed our warnings below, and you might save you and your student some heartache -- and money.

Saving Money

• Don't delay. Parents who begin planning for college tuition during their child's junior year have ample time to figure out their Expected Family Contribution (EFC), which is how much money the family has expendable to put toward one child's education. With this number in mind, your student will have a more targeted search for colleges and scholarships.
• Don't deplete your savings. If your child doesn't have a college savings account, don't reach too deeply into your own to pay for his/her education. Student loans - and their accompanying interest rates - will likely be a more attractive alternative to you working well past retirement age because your savings paid for your student's education.
• Don't go into debt. Recent legislation banned anyone under 21 from having a credit card, without a cosigner or significant income. Regardless, the longer your student can put off using a credit card, the easier it will be to avoid debt. Check out Campus Dough to manage your student's expenses on a pre-paid card.
• Don't overlook fees. When you sign your child up for a bank account, shop around. Smaller banks may have better deals and charge less fees. Ask about the following: fees for using a debit card, fees at different ATMs, fees for overdrafts and fees for going to a teller.

Earning Money

• Don't put all your eggs in one basket. If your student (or you) plans to earn tuition money for the following year during the summer before, have back-up plans. It's too easy to not meet the financial goal, due to other unexpected expenses, health issues that limit working or layoffs and pay cuts. Plan to save some income for education, but help your student diversify funds by applying for aid and scholarships.
• Don't be nearsighted. If your student decides to work during the semester, encourage him/her to think about more than wages. While a retail paycheck will help pay the bills, it might not be the best choice in the long run. Work/study jobs on campus and internships won't be especially lucrative, but the experience and contacts made could pay off later.

Receiving Money

• Don't ignore deadlines. If your student applies to college and scholarships early, he/she won't miss out on opportunities for financial aid. Also, filing your taxes as early as possible will help give you ample time to fill out financial aid forms. The more information you have when it comes to choosing a school and how to pay, the wiser your decision will be.
• Don't jump the gun. On the other hand, sometimes being early isn't better. If your student makes an early decision to attend a university, that could limit your funds if he/she later receives financial aid for another school. Wait until you have enough information before you make any decisions.
• Don't be shy. Encourage your student to brag. Competition for merit-based scholarships is tough. Make sure all applications highlight accomplishments, paint a picture of a well-rounded student and foreshadow future excellence.
• Don't lie. Obviously all applications for financial aid and scholarships must be true. But if your situation changes after you've submitted, contact the school or organization to notify them. If you lose your job, for example, most schools have standard policies that would increase your likelihood for assistance if your income decreases.