When considering a student for financial aid, the federal formula expects the student to contribute 50% of the student’s income (minus the income protection allowance), and 35% of the student’s assets during his/her base year. Given this, the family should spend down the student’s money first. For example, instead of buying the student a car or a computer while he/she is in college, have the student buy it out of their own funds during the base year before you apply for FAFSA. This may increase the student's eligibility for aid and reduce the family's out-of-pocket costs.