As the school year starts, the realization sets in, especially for juniors and seniors, that there’s a lot to understand about finances and beyond. Here are five things every student should know:
U.S. student debt tops $1.5 trillion. The average student owes $31,172, has a monthly payment of $393 and takes 10 – 20 years to pay off their loans. As your child begins to consider college, encourage them to think about the long-term implications of debt. Pursuing scholarships of all kinds is wise. So too is trying to minimize the size of loans.
Young people have a big decision to make. “Should I pay for college or a trade school?” There are plenty of tradespeople making healthy incomes, especially if they own businesses. College isn’t for everyone, but students should realize that the best return on their investment is one that creates the best employment picture and life-long income potential.
Before every big purchase, teach your student to research the costs and talk to people who have been in their shoes. Also explain how to make a budget and save three to six months of expenses in an emergency account.
The times when you step out of your comfort zone are often the times you learn the most about yourself. Urge your teen to work hard and gain the wisdom that comes with new experiences.
Each phase of life brings its unique set of challenges—reassure them of their potential and encourage them to steal moments each day to reflect on where they’ve been and focus on the positive aspects of their current situation.
This article was published in Alloy Silverstein’s Fall 2019 Newsletter. Click here for more content or to subscribe.
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