Talking to a Teenager Now May Save Them Tens of Thousands of Dollars Later

February 15, 2013

I like to write about the things I see in my daily life as well as some of the things going on in my family, and right now the family conversations have a very common theme. My daughter is a senior in high school and recently was accepted to all of the colleges to which she applied. Now, it becomes a matter of preference, location, and atmosphere and of course, the financial aid packages offered will factor into the decision as well. She has known since she was 4 years old that she wants to be a teacher, so paying $60,000/year to go to an elite private school was not going to be an option for her.

I’ve met far too many 20-something’s who are starting their careers with $60,000 – $120,000 in student loan debt and every one of them has said that if they had to redo their college selection, they would have gone to a far less expensive one. The “bang for the buck” just isn’t there in this economy. As a parent who happens to be a financial planner, I wouldn’t want to see my daughter (or my sons a few years down the road) burdened with such a large amount of debt at such a young age. I have seen too many people fail to reach their goals and live with enormous stress because of debt, so I’m hoping to impart that message to all of my kids as they consider their options.

And when it comes to options, college isn’t the only choice for young people today. Some of my daughter’s friends do not plan to go to college after high school and I am intrigued by some of the choices that they are considering. A lot of kids do not believe that college is the best path for them, so they are taking a different path. Each of these options can boost a young person’s employment potential at a price that’s way more affordable than a 4 year college degree.

A 2-year associate’s degree is a very good way to boost employment prospects while keeping costs low. It is a clear differentiator for jobs not requiring a 4 year degree and many of the 2 year programs I have seen have a very clear career track, like with nursing and business degrees. The thought process I have heard is “get out there, get the associate’s degree, get a job and then carve out your niche.” And, some of the kids think that if they do this and then get a job, an employer may have a tuition reimbursement plan where they can pursue their bachelor’s degree while working if they choose to go down that path.

A certificate program is another very low cost option to get a jump start into a career. I have recently talked with people who have gotten their CNA (Certified Nursing Assistant) certificate as well as a few information technology certificates (through Microsoft and Cisco). We are certainly not moving toward a lower-tech society and healthcare is now another area where there is demand for qualified workers. For someone with a clear interest in fields like this, but who doesn’t want to spend 4 years in college paying high tuition costs, these certificate programs are a great idea. There are many occupations where a certificate program can be valuable

Trade schools have been around for a long time and their popularity seems to be increasing in this economy. The world will always need people who have actual skills and can build things and fix things. One of the smartest kids I’ve ever known never really wanted to go to college and enrolled in a trade school. He was fascinated by electricity (as opposed to those of us who aren’t exactly comfortable getting shocked when we touch the wrong wire…) and became an electrician. He now owns a number of electrical supply warehouses and is remarkably successful.

If you are wondering what types of choices a teenager in today’s world has in front of them, maybe you can help them think through ways to NOT graduate from college burdened by a mountain of debt. They may thank you many years later for saving them from being financially burdened for a few decades by the choices they made at 18 years old.