College: A Teen’s First Major Financial Decision
Concerns around COVID19 have complicated college decisions for many teens and their parents. Combine that with the considerable expense of tuition, concerns around student loan debt and the choice of where to attend college becomes increasingly complex. A local financial advisor has designed a free workshop for parents and teens, geared towards creating a reasonable family budget for college tuition.
“College graduates still earn more than those with a high school degree. What is concerning to me as a financial planner is that young adults are consistently having a harder time building an asset base. During personal or national crises, such as a pandemic, personal assets differentiate who can reasonably weather the storm and who is devastated by the impact,” says local financial planner, Tron Welch. “I’m not talking about massive amounts of wealth, but having a nest egg, buying a home and contributing towards retirement. It is becoming increasingly difficult for college graduates, even with low debt loads, to lay the groundwork for a healthy financial future.”
Welch believes that we can help college applicants learn to set themselves up for a stronger future by teaching them to consider the financial implications of college. “We want to continue to encourage teens to pursue higher ed, but to do so in a way that makes sense.” We can do so by helping them not only learn how to evaluate the return they will receive, but consider important factors such as debt load. Additionally, Welch feels that it’s important to help teens develop a picture of what a post-graduate budget looks like along with an understanding of the importance of starting to save early on.
Earlier this year, the St. Louis Federal Reserve published a study that concluded: “The promise of economic and financial advantages associated with postsecondary degrees remains only partially supported by the most recent data.” The study expresses that while the decline in return is concerning, a college graduates are still less likely to default on loans, more likely to be in a long-term partnership and report higher overall health.
“These findings make it important for families to really consider their options and make a calculated decision,” says Tron Welch. Welch Financial Planning is offering a free webinar, TuitionWISE on Thursday July 16th at 6:30pm. Parents and teens are encouraged to attend. The workshop offers and opportunity to start the family discussion on college budget, identifying a good college offer and understanding return on investment. For more information visit https://welchfp.com/webinars/sign-up
TuitionWISE on Thursday July 16th at 6:30pm
For more information visit https://welchfp.com/webinars/sign-up