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INVOLVE YOUR CHILDREN IN COLLEGE PLANNING

Most children don’t become involved in the total college process other than looking at colleges where their friends are going or the college’s social life.  But being part of the overall process can be very educational for children, as it presents them with valuable information about the cost of college, financial aid, job placement services, etc. 
Many financial experts believe the best time to introduce children to college planning is when they are in middle school.  During this time, parents should initiate discussions about college to instill the idea that the family supports and encourages a college education.  As children prepare to enter high school, it’s important they learn the value of solid study habits, good grades and participation in extracurricular activities as requirements for college acceptance. 
Some high school students know the career they will pursue and that will influence their choice.  Others, have no clear idea.  Either way, they should be involved in college planning at a deeper level including the following:

• Costs.  A moderate college budget for an in-state public college for the 2012-13 academic year is $22,261 per year.* At a private school, it’s $43,290.* Between 2008 and 2010, the average tuition at a four-year public college increased 15%.  College is expensive, so talk openly with your children about the full cost of college to help them gain a deeper appreciation for the financial sacrifices you will make.  Encourage them to learn about the costs of each college as they begin their research.

• Scholarships.  Have your children start searching for scholarship sources early in their high school years.  Your local library and high school guidance office will have information about state-sponsored aid programs and scholarships offered by local organizations.  Another source is the Internet:  www.fastweb.com and www.finaid.org contain search engines with data about thousands of scholarships with varying eligibility criteria.  In addition, www.fafsa.ed.gov provides an overview of federal student aid programs.

• Savings.  High school students should be encouraged to set aside a portion of their wages from part-time or summer employment for college expenses.  They should also try to obtain jobs that build on career interests as a way of solidifying their future plans.

• Get Organized.  College planning includes numerous details:  visiting campuses, sitting for SATs, applying for financial aid and scholarships, obtaining transcripts and letters of recommendation, and completing applications.  Together with your student develop a timeline beginning in the fall of their junior year to ensure deadlines are met.  During school vacations, have them organize trips to visit campuses or complete college applications.

You may think of more ideas that could add value to your family’s efforts to plan and save for a college education.  Getting your budding scholar involved early in the process – financially and otherwise – could ultimately be a pivotal lesson in responsibility that impacts his or her success later in life.
Having a College Financial Plan can ease the burden of college planning.  If you’d like me to review – or create – your plan, please give me a call.  Your first appointment is complimentary.

 

Edward A. Metz, CFP®, CPA/PFS
LPL Registered Principal
973-895-1133
Securities offered through LPL Financial.  Member FINRA/SIPC

 

*CollegeData 2012