What To Teach Your Kids Before College

July 26, 2016

This time of the year is brimming with the excitement of future college freshmen over their new adventure. Talking to them is fun – hearing about their hopes, dreams and expectations of their freshman year. The more I started listening, the more my excitement wore off and disbelief settled in. I started to realize that some parents have this expectation that they can teach their kids zero about finances, give them an account with a few thousand in it and expect their kids to become financially responsible and budget properly. Here are some tips to follow instead:

1. Summer jobs are great economic teachers. If your student has a summer job, use it to teach your child invaluable lessons such as what their future careers may be for life if they drop out of college with no plans, that the gross vs. net difference in a paycheck is big and guidance on how to budget their money. Use websites like Mint, YNAB, or even the budgeting tools where you and your family banks to help your child create a budget.

2. Show your child the economic realities of college. Most people think about tuition, books and room and board. To some degree, that is only the beginning.

Every organization, fraternity or sorority your child is thinking about joining may have a fee, some to the tune of over $600 a semester. There are also those pesky fees like student health center fees, student activity fees, orientation fees, new student fees, technology fees and whatever other fees the college thinks up to charge. Use checklists like this one as a guide to possible costs.

3. Come up with an “oops I screwed up plan.” Okay, let’s be honest. None of us were financial wizards when we went to college. A lot of us overspent in our attempt to fit in and alleviate home sickness. Talk to your child before they mess up about how you will handle it the first time and come up with what you will do if they make the same mistake twice.

One of my friend’s parents told her daughter that she would consider the first time she makes a financial mistake a lesson learned. The second financial mistake will result in the “Bank of Mom” shutting down. My friend figured that at worst, her daughter would still have food from the cafeteria to eat, a dorm room bed to sleep in and feet to walk to class.

Don’t wait.Working on a contingency plan now will save you from unnecessary and probably emotionally charged conversations in the future. Take the time to work with your kids on a financial plan for college to not only save your wallet but to save your sanity.

Passing On Your Money Skills

May 05, 2015

Working as a financial planner gave me the opportunity to meet so many people and to hear their amazing stories as to how they became wealthy. Most came from humble means, from former refugees who did not speak English, to former teenage moms, to those that grew up in foster care. Their stories are an inspiration.   Continue reading “Passing On Your Money Skills”

A New Tool in the College Selection Game

November 07, 2014

With one daughter in college and two boys following her down that path over the next decade, the whole concept of “bang for your buck” regarding college costs hits rather close to home right now. Every parent would be pleased to learn that their child got accepted into Ivy League schools. Fewer would be pleased when the tuition payments came due!  And after graduation, when the total cost of the education was known and a child with a liberal arts degree went into a job market that isn’t currently rewarding, that type of degree from there would be even less joy.  Continue reading “A New Tool in the College Selection Game”

Funding Your Child’s College Education is Not Impossible if You Follow These Steps

March 26, 2012

This past weekend, I had the opportunity to visit my little two-year-old granddaughter.  Since we live out of town, my favorite memory of the weekend was walking into the living room on Sunday morning and the little darling looked up at me in surprise.  My step daughter said, “Noni (that’s me) is still here!  Isn’t it wonderful?”  A big smile and hugs followed.  Those are the moments that melt your heart.  Continue reading “Funding Your Child’s College Education is Not Impossible if You Follow These Steps”

Getting Smart About College Costs

February 29, 2012

Just about every parent thinks about the day when his or her child leaves home with a blend of pride and sadness.  Today’s parents with college-bound children probably add a measure of financial anxiety into the emotional mix.   Not only are these kids emptying all their stuff from the upstairs bedroom, they may also be emptying their parent’s bank accounts and hopes for a secure retirement. Continue reading “Getting Smart About College Costs”

Back to School Season Brings Tuition Bills to Your Employees

September 13, 2011

It’s that time of year again.  Summer is coming to an end (already!) and college classes are starting.  You know what that means for your employees that are parents – time to start writing those checks!

Unfortunately, sometimes those checks have nowhere else to come from but their retirement accounts.  If you handle the day to day administration of your retirement plan, do you notice an uptick in hardship withdrawal and loan requests around this time of year?  If so, these looming college costs could be the culprit.  According to the College Board, the average tuition this year is almost $8,000 for an in-state public university, and that doesn’t even include room and board, books, and other typical costs. Continue reading “Back to School Season Brings Tuition Bills to Your Employees”

College Planning: A Conversation that Might Save Me $100,000 or More

March 25, 2011

One night not too long ago my daughter and I had a really good conversation about life, choices people make, who we like in this year’s American Idol (James!), and why she thinks her milkshakes are better than any that you can buy at an ice cream shop.  I’m sure there were plenty of other topics discussed too, but those are the ones that I remember the most.  And, she REALLY can make a mean milkshake!  Hey, a dad has to make sure that his kids don’t lie, right??? Continue reading “College Planning: A Conversation that Might Save Me $100,000 or More”

Offering 529 Plans via Payroll as an Employee Benefit

December 21, 2010

Employers may be missing a tremendous opportunity to help employees save for one of the most important, and expensive, investments they will ever make – the college education for their children.  We all know that one of the biggest advantages of an employer-sponsored retirement program is the automatic payroll deduction.  “Out of sight, out of mind” is what I hear consistently from employees when they think about the funds that are contributed to their 401(k) plans. Continue reading “Offering 529 Plans via Payroll as an Employee Benefit”