College Money Smart is critical for any student. College is a time of little money and many students have to make sacrifices to pay for tuition, books, and other expenses. Financial planning for college should start long before you enroll and stick to it as closely as possible. Having a plan will ensure you have the resources you need to pay for college and you'll be prepared for the challenges you'll face. Listed below are some steps you can take to make college financial planning easier:
o Give your child a role in college financial planning. This is a big step for them - they're entering adulthood! By giving them a part of the responsibility, they'll be more likely to take it seriously. For example, they can apply for scholarships, work-study, and educational grants, if they are eligible. By giving your child a role in paying for college, you give them a sense of ownership of the education process.
o Write down all the expenses you expect to incur while in college. Estimate the cost of these items. It's also a good idea to budget for on-campus activities like concerts and shows. These usually cost around $10 or $20. Whether you'll need to purchase these items in advance or buy them later, plan accordingly to save on your costs. In addition to paying for tuition, you should also budget for the costs associated with transportation and other expenses.
o Research college-related tax breaks. The government uses the EFC when determining financial aid. For example, there are 529 plans with a range of tax benefits, and you can also claim up to $2,000 in tax credits by registering your child in these accounts. Lastly, you should avoid opening certain assets in your child's name, because these will count against your total expected family contribution, which will decrease the amount of need-based aid you receive. Instead, legally designate these assets to the appropriate types of accounts.
By educating yourself on college funding, you can help your client avoid stress and better prepare for the future. Having a financial professional review your child's financial plan is a great idea. Whether your child has a college-specific plan or is just starting to learn about the financial world, an independent financial planner can help you make smarter decisions. It's worth contacting Focus Financial to learn more about their services and how they can help your child achieve their dreams.
In addition to financial planning for college, you can use your student ID to get discounts at local businesses and online. Having a budget helps you control your expenses and avoid overspending. It's also a good idea to set financial priorities, since they help you determine what should be prioritized. If you have a hard time keeping to a budget, you might need to adjust your lifestyle and cut back on spending. Cut back on eating out or buying takeaway food, or make other necessary sacrifices. Check out this post that has expounded more on this topic from this website: https://en.wikipedia.org/wiki/Finance.