How To Discuss College Costs With Your Teen

November 25, 2024|Melissa Joy, CFP®, CDFA®

😱 College costs can be a daunting topic for both parents AND teens.

But having an open conversation early on can make a world of difference. If you haven’t started discussing the financial aspects of college with your teen, now is the time. ⏰

In this episode of Women’s Money Wisdom, Ann Garcia CFP® shares her insights on how to approach this discussion. 📢 Ann is the author of ‘How to Pay for College’ and runs the College Financial Plan Masterclass.

Article Contents

🎯 Set Clear Expectations

It’s important to be transparent with your teen about what your family can afford when it comes to college. Discuss what you’ve saved, what you expect them to contribute, and what role scholarships and financial aid will play.

📚 Research Together

Engage your teen in the process of researching colleges and their costs. Use tools like each college’s net price calculator to get an estimate of what you might ACTUALLY pay after scholarships and financial aid. 🎓

This can be an eye-opener and help narrow down the list of schools that are both affordable and a good fit.

🗓️ Explore Scholarship Opportunities Early

Encourage your teen to start looking for scholarships as early as possible. The more they apply, the better their chances of receiving aid. Some scholarships are available to students as early as freshman or sophomore year of high school! It’s never too early to start.

✅ Discuss Student Loans

Make sure your teen understands what taking out student loans means and how it will impact their future. Discuss the pros and cons of borrowing money for college and set limits on how much debt is acceptable.

🎤 Involve Your Teen in the Decision-Making Process

Ultimately, your teen will need to be comfortable with the financial decisions being made. Involve them in discussions about college costs, scholarships, and financial aid. This will help them feel more invested in their education and more prepared for the financial responsibilities that come with it. 🚀

Want to hear more tips on financial planning for college? Tune in to our Women’s Money Wisdom podcast episode 221!

Melissa Joy, CFP®, CDFA®

Melissa Joy, CFP®, CDFA® is President and Wealth Advisor at Pearl Planning. Reach out for a call today at 734.274.6744.

8031 Main St. Suite 302 Dexter, MI 48130

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Kids & College Planning

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