From Freshman to Senior year, kids can be working on specific things that will help them on their ultimate goal: getting to college. It’s important to plan, and continuously revisit what that plan is and how it can be accomplished.
1) Find out their WHY
Why does your child want to go to college? Hopefully, it’s to be a professional in a specific field, and a degree is needed in order to get there. The more you plan what your end result will be, the more focused the steps will be to get there. Encouraging our kids to find their why, and write it down where it’s visible every single day is the first step in planning for their future, and also will be a more focused and attainable goal.
Conversations about the future should begin as soon as the middle school years. Ask if, and what questions… if money wasn’t an obstacle, what would you do to make money or help people. Find out what your child’s purpose is, and lead them in the direction of fulfilling that dream.
After you know their why, it is a lot easier to figure out steps in order to get there. The why is the main goal, the steps to get there will be where to attend college, how many years is needed, and what schools have the highest job-placement-rate after graduation.
2) What is the cheapest way to fulfill their goal?
For some reason, our culture has taught us that attending the most prestigious schools will land us a better job in the real world. That is a false statement. Elite schools will not land us better jobs in the real world. In fact, this may be part of the reason why our country is in a national student debt crisis. There are many companies that do not even know where their employees went to school; what matters most is the attitudes and production of their workers.
Community college is a great option for kids to start their undergraduate studies, and students can transfer to a University after their two year completion, and continue on to obtaining their Bachelor’s degree. Remember, it is about obtaining the degree, not about spending the most money to get it. Students will need to take prerequisite courses whether attending a University or a community college, and on average, students can save around $8000 if attending a community college first.
Advising your kid to do a work study program, or find other opportunities for part-time work on campus is also a great way to get some extra money while attending college.
Side note: Did you know that most bankruptcy will NOT clear away student loan debt?!
3) Scholarships, scholarships, scholarships!
First off, apply for the FAFSA. Even if you don’t intend to borrow money from the government, your kid can still receive a federal grant just by applying for the FAFSA. Federal grants do not have to be repaid! Once you’ve applied for the FAFSA, you are free to apply for all the scholarships. Many are need-based though, so the scholarship-giver will want to see what Uncle Sam sees.
National scholarships are the big scholarships that are harder to get, but more rewarding. Some examples are the Coca-Cola, and Daniel’s Fund scholarships. Yes, they are hard to get, but is it worth applying for them? Absolutely! It is important to apply for as many scholarships as possible. When in high school, if kids think of it like a part-time job, it may seem easier to fill them out. It IS a part-time job– kids are filling out paperwork at the chance of receiving money in return. National scholarships are usually available in the beginning of each school year. Coca-Cola, for example, has an application period from August through October, with a strict deadline.
Local scholarships are smaller scholarships, but easier to receive, because less people are applying for them. If students apply for enough local scholarships, that money can really add up. If you are wondering where on earth to find these scholarships, a great place to start is by asking your school counselor. Many schools also have some sort of college connection center, with an expert that will help your kid find scholarships, and even help them apply.
Scholarship-givers are looking for students that meet or exceed their standards outlined on the scholarship applications. There are merit-based scholarships that are awarded based on academics and sometimes a special personality interest or trait. There are also need-based scholarships that are awarded to students that need financial assistance in order to help pay for college. Many have certain GPA and ACT stipulations in order to apply. Therefore, it is important to research these things throughout high school.
It’s should also be noted that students can still find and apply for scholarships in and throughout their college career. Many scholarships are available just for Sophomores in college, or just for college Juniors. There is so much free money out there to be used for students attending college, and sometimes it just takes parents helping our kids to look for it.
4) Teach them about finances and adulting
Student loan debt is a national crisis, and so many people don’t realize that even if you declare bankruptcy, it doesn’t usually clear student loan debt. The average student loan payment is $390 per month, according to the Federal Reserve. It is imperative that we teach our kids what a financial statement is, and if you don’t know– don’t feel ashamed, many adults do NOT know what a financial statement is. Here is an example financial statement of the typical American college graduate:
| Monthly Income | Monthly Expenses | |
| Average salary: $35,000 | +$2,575.00 | |
| Food | -$250.00 | |
| Utilities | -$200.00 | |
| Housing | -$1000.00 | |
| Gas/transportation | -$200.00 | |
| Car Insurance | -60.00 | |
| Student loans | -$390.00 | |
| Car loan | -$300.00 | |
| Car Maintanance | -$75.00 | |
| Credit Cards | -$120.00 | |
| Cell Phone | -$70.00 | |
| Health/Doctor | -$20.00 | |
| Entertainment | $0 | |
| Restaurants | $0 | |
| Clothing | $0 | |
| Unexpected Expenses | ||
| TOTAL EXPENSES | -$110.00 |
If we don’t teach our kids about money, then our out-of-control, in-debt culture will. The typical American graduate also has credit card debt, as well as student loan debt. According to this financial statement, the typical American graduate is at a deficit of $110 per month. No entertainment. No going out to restaurants. No clothing. You may say this will not be my kid, but you know all these expenses are so easy to come by. Where are our kids going to get that extra money?
If your child can attend college without student loan debt, they are still going to be working to keep their financial statement in order. It would sure help if he/she didn’t have a $390 student loan payment to make each month.
Another piece of bad news is that most people who apply for loan forgiveness programs have been rejected. Less than 1 percent of people who apply, actually receive it.
Parent/Grandparent tip: There are two different college savings plans that you can contribute to as soon as your babies or grandbabies are born. 1) A 529 plan, and 2) an Education Savings Account (ESA). It is best to start these plans as soon as possible because of how they can grow over time. They are tax-free plans (as long as they’re used for school purposes) that grow with the stock market, which is hopefully at around a 10% rate of return. Ask an investment broker for more details. A few big companies that many people use are Charles Schwab and Edward Jones.
5) Teach kids to take care of themselves
This may seem obvious, and I guess it is… but sometimes we need someone to remind us. Kids get caught up in their high school and/or college world, and forget there is an outside world. Here are a few example goals to keep in mind throughout their high school and college lives.
FRESHMAN YEAR– Keep grades up (this is the year that will either set them up for success with their GPA, or force them to dig out of a hole the rest of their high school career) and get involved in extracurricular activities.
SOPHOMORE YEAR– Work on grades, get involved in advanced classes, and extracurricular activities or a part-time job.
JUNIOR YEAR– Get ready for the ACT, keep focusing on grades, get involved in advanced classes and dual/concurrent enrollment courses. It’s also time to begin looking for scholarships, and narrow down college lists.
SENIOR YEAR– Scholarships! Keep your grades up (to the very end), keep taking advanced classes, retake the ACT if you need to bring your score up, visit your top few colleges, apply for colleges, and FINISH STRONG!
SOCIAL MEDIA: Their online presence will follow kids for years in the future. If making a public announcement in the front of the auditorium at school about what will be posted doesn’t seem comfortable, then it is better NOT to post it. It’s important to have fun, but not at the expense of losing everything you’ve worked for.
COMMIT THEMSELVES, BUT DON’T BURN OUT: There can be an extent to which kids are overworked, trying to live up to too many expectations. Let your child be in extracurricular activities, let them get a part-time job to help pay for college, but also– let them just have fun.
CHOOSING A MAJOR: Help your kid choose a major that helps them land a job. Sadly, there are some majors in colleges that do nothing to help with getting a realistic job after school. When it comes to choosing, help guide your child in to a major that balances passion and common sense.
Your child is in control of his/her own success. In the end, it isn’t how your kids gets to their goal, but that they actually achieved their goal.
Creating opportunities for financial freedom 