Teaching Teens Money Matters Before Graduation

by Carol H Cox

No, it’s not too late to talk to your soon-to-be-graduating high school senior about personal finance! In fact, now is a great time to begin the conversation. My parents never had these talks with me when I was graduating from high school, but I also wasn’t facing tens of thousands of dollars of student loans in my future either, and credit card debt wasn’t the huge problem it is today.

Managing money well is now more important than ever. The average college grad leaves school with about $28,500 in student loan debt, and the average American struggles with over $6,900 of credit card debt carried from month to month.

You don’t need to be an expert to give good advice to your child, and you don’t have to have your finances in perfect working order either. We’ve all screwed up our finances on more than one occasion. It’s tough for us parents to admit that we’ve made money mistakes, but these may be some of the best teaching lessons. They’re real. They’re memorable.

Life is messy. It doesn’t follow neat little rules—although financial experts sure like to draw them up. So take comfort in knowing you’re not alone. Many Americans are in difficult financial situations, like too much debt, flabby credit scores, savings deficits, and the like.

Now, where to begin?

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A Cheaper Path to a 4-Year College Degree

By Carol H Cox

Full-time employees with bachelor’s degrees have median earnings that are 67% higher than high school graduates, according to 2016 data from the U.S. Bureau of Labor Statistics, approximately $60,100 versus $36,000. An individual who has a 4-year college degree improves his or her potential income by hundreds of thousands of dollars over 40 years or more of employment.

Yet, to achieve a bachelor’s degree is increasingly expensive in the U.S. and out of reach for many individuals unless they and their families are willing to shoulder student loans in the tens of thousands of dollars. Encouraging young adults, age 18 and older, to take on sizable debt is not a very appealing solution, although that is what is happening in the U.S. today. Continue reading “A Cheaper Path to a 4-Year College Degree”

Student Loans: Think Carefully

By Carol H Cox

 

photo: www.cafecredit.com

 

It’s no secret that American private colleges and even many public universities are absurdly expensive these days. In the process of weighing acceptance options, high school seniors will be reviewing financial aid packages and may be considering signing up for student loans. It’s important for everyone involved, students and parents alike, to educate themselves about what a student loan really involves.

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Older Americans Taking on More Student Loans

 

By Carol H Cox

 

Are you a parent or grandparent considering co-signing on or taking out a student loan for your child or grandchild? Well, you may first want to read a new study on this matter.

In January of 2017, the Consumer Financial Protection Bureau (CFPB) released a sobering study called “Snapshot of Older Consumers and Student Loan Debt.” (In the study, “older consumers” are categorized as those being age 60 and older.) Between 2005 and 2015 the number of older consumers carrying student loan debt, meaning either co-signing on or taking out student loans directly, has increased by a factor of four, to 2.8 million Americans. These older consumers are responsible for a total of $66.7 billion of student loan debt, including federal Parent PLUS loans and private student loans.

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Personal Finance Tips Before Heading to College

By Carol H Cox

At this time of year, the attention of many high school seniors’ becomes focused on transforming into college freshmen. It’s a thrilling time for young adults as they experience increasing independence, emotional untethering, and face new challenges. But before they “cut the cord” there are a few personal finance basics they should know.

Cycling in Bordeaux by Carlos ZGZ

  • Having a checking account with an ATM/debit card attached can make handling student finances easier.

Ideally, with the help of a parent, college-bound teens will have opened a checking account sometime during their junior or senior year of high school. Checking accounts are a convenient and easy way to store and access money. And most student checking accounts are free until the accountholder graduates from college. There will be many expenses in college that aren’t included with the payment of tuition, room and board, and fees, whether it be books, class supplies, toiletries, meals off campus, transportation costs, or other things. Using an ATM/debit card or writing checks can be an efficient way to handle these costs.

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Help Is a Text Away for Students Sorting Through College Financial Aid and Loans

r-nial-bradshaw_flickr_ccattributionThe statistics are frightening. Americans hold $1.3 trillion in student loan debt. This represents years and years of hefty loan payments for millions of citizens. High School students and college students, need assistance understanding the financial aid and student loan process so that they can make the best financial decisions for themselves.
There’s a startup company that wants to be a sort of financial-aid-counselor-in-the-pocket for students. It’s called NextGenVest, founded by Kelly Peeler. According to a NerdWallet analysis, in 2014 as much as $2.7 billion of free federal financial aid went unclaimed by students, mainly because of either a failure to file or incorrect completion of the Federal Application for Student Aid (FAFSA). This is free money that students didn’t receive. And what is more, in 2014 graduating college seniors carried $28,950 in student loans with them when they left school (the Institute for College Access and Success report).

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