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Top Money Lessons to Teach Your Child Before College

One of the questions that parents ask most often is, “When is it too early to discuss money with my child?”. I believe that it’s never too early to talk with your child about money. The sooner you can foster a positive relationship with money for your children and family, the better. The money lessons you teach your student at an early age will impact how they view and use money for the rest of their life.  As a college financial aid advisor, I’ve seen many situations where poor money choices hurt students and their families. Like a student getting invested in a school before realizing you can’t pay for it, wasting money and time applying to schools out of your financial reach, using a credit card unwisely during school years impacting a credit score for many years to come, and taking out the maximum amount of loans without a second thought. Situations like these can be easily avoided with smart money lessons and honest financial discussions.  Wondering where to start? Here’s a few of my favorite money lessons!   Know the difference between needs and wants.  Life has a few basic needs – food, shelter, and clothing top the list. But we don’t need more food than we can eat, more house than we can fill, or more clothing than we can wear. Those are wants. The same is true with a college education. A more expensive school doesn’t mean the best education. Many lower-cost colleges offer wonderful educations at a fraction of the cost. Your student has to understand what is a “need” and what is a “want” when it comes to a college education.  Neither a borrower nor a lender be. This one applies to students and parents! Many parents feel they have to be responsible for the entire cost of college for their student. But, if the student has no fiscal responsibility, the amount due can become the parents’ responsibility. To top it off,  your student has learned nothing. The same goes for saving too.  If a child is involved in saving money for school, making money decisions and borrowing money wisely, these lessons will help pay for college. These lessons will also support their chosen lifestyle after graduation. A penny saved is a penny earned. It seems like saving money has gone somewhat out of style, and that everyone likes to live on borrowed money. This approach leaves nothing for the future.  A child who earns an allowance and uses money to make small purchases goes on to be a high school student who takes summer jobs to save money. This money lesson is all about teaching responsibility and forward thinking.  Money conversations are hard. No matter what, it’s going to feel uncomfortable. But that’s okay! Temporary discomfort will allow both you and your student to feel confident about how they look at and use money. Avoiding money conversations can create more permanent damage for your student – like lifelong debt or misuse of money. If you want to learn about more of our top money lessons, check out our recent post here. Who We Are CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

How to Prepare Your Rising Senior for Financial Aid Deadlines

Spring is a time of moving up for high school students. Seniors are moving up to college after graduation, and high school juniors become seniors for the fall. The transition from high school junior to senior is full of many changes.  There’s so much to do as a rising senior. For most students, the most important task ahead is college applications. But, many families don’t think about how soon they need to begin that prep work, especially as the school year is ending. There’s so many deadlines (applications, essays, financial aid, and so on) to keep track of and it’s important for rising seniors to prepare for financial aid deadlines as early as possible.  2023 Updates   The FAFSA deadline has been moved to December for 2023 (it will return to October after that). While it seems like December is far away, there’s still so much to do online to begin the financial aid process. Rising seniors (and their families) need to complete the FAFSA and/or the CSS/Financial Aid PROFILE shortly after the applications come online. It’s important that your student understands the deadlines for all of the prospective schools they’re interested in. This includes financial aid deadlines. Knowing their schedule will give you a good idea of the timeframe you need to shoot for, especially if your student is interested in an early decision or early action application. Because the launch has been pushed to December this year, the turnaround time is even shorter for financial aid. FAFSA is the gateway to most forms of federal, state and some institutional financial aid. These can all be a great help in paying for college. However, they have limited amounts of money available. Awards are only granted until the funds run out. The later you apply, the less money you’ll have access to.  Here are things you can do to prepare your rising senior for college financial aid deadlines:    Know your costs  Have an honest discussion with your student about what it costs the family to support someone in college. You still have to run your household while supporting them. There are many costs involved in this such as tuition, room and board, travel, and living expenses that the family does not have to shoulder now. Be aware of what is involved, and know what you can afford. While this isn’t the most “fun” conversation, it’s very important to everyone involved.  Estimate your financial aid There are some good calculators available which can give you an estimate of the college financial aid you might be able to receive. These figures are not set in stone until each individual college makes an official financial aid offer. But, they still provide a good idea of what you might expect.  If the figures don’t fit your  finances now, you’ve got some work to do over the summer. You may need to consider other colleges, research student loans or look for scholarships that can help bridge the gap. Get prepared Find out what you need to know about the FAFSA now. Get your documentation in order so that you don’t get behind. FAFSA does use an IRS data retrieval tool, but it’s still a good idea to have everything together. This is especially true if anything major has changed in the last year that will impact your finances, like divorce, job loss, or retirement.  Senior year is such an exciting time for you and your rising senior. Taking care of these deadlines will help everyone enjoy the celebrations that much more!  Who We Are CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter. plan it

Four Ways to Prepare Your Student for College Success

As the spring begins, college seniors are making their final decisions about which school will be their home for the next few years. Paperwork is being submitted, deposits are being paid, and you and your student are celebrating this next step. While celebration is definitely called for, it’s time to prepare your student for college success. There’s still some important conversations to have – and even a few more decisions to make. Here’s four things you and your student should do to prepare for college! These are great tasks to tackle as their senior year comes to a close.     Decide on the meal plan. College meal plans can be a big part of the out-of-pocket expenses, so make sure you are doing it right. Many parents find that they overpaid on the meal plan. Yet, they still end up giving their student money for food. Make sure to research what options exist for your student on the meal plan. Don’t forget about what’s available in their dorms or suites for their own cooking. From there, you and your student can determine if it’s more likely they’ll eat in the dining facilities or not. Once you know, you can select the appropriate plan to pay for! Don’t be afraid to set a budget for each month when it comes to food options for your student, too.  Research textbook options. Once your student has a class list, begin to research textbooks. Many schools offer book lists through the college store online or in person. Find the list and determine which books can be rented, found online, or need to be purchased (and kept) by your student. Rentals and digital downloads can save your student a lot of money over the next four years. Check options like Amazon and Chegg for the best deals.  Plan the student loan usage.  By now, your family should have compared the financial aid award offers with the total needed to fund your student’s education. If you haven’t, now’s the time. Once you have, make sure everyone is on the same page about where this money is coming from – and going. Many families use the money without realizing how far in debt they actually are. Spend time in the next few months reviewing options to earn extra money or helping your student save so that you can cut down on student loans.  Set a budget.  For most students, this is the first time they are on their own and managing their own finances. Now is the time to start talking to your child about a budget. Discuss the differences between day-to-day needs and wants, as well as how quickly a credit card can become dangerous. Review some of our top financial lessons with your student and lay out expectations about how money should be used during school. It’s also important to be on the same page about who is responsible for what repayment after graduation. Now is such an exciting time in your student’s life. There’s big changes ahead on the horizon for them, and going to college with a plan and feeling prepared will help them through their transition. Congratulations on the next chapter of your student’s academic career!  Want More Help? Learn about financial aid and find out more about preparing students for college in my book, Secrets of a Financial Aid Pro! You will find information on completing the FAFSA, saving and paying for college, comparing financial aid offers, making decisions on student loans, and searching for scholarships. Order it now, and get all the information you need to be fully prepared for college.  Who We Are CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter. plan it plan it

Four Financial Aid Deadlines for Your Student to Know for College Applications

Applying to college can feel like a whirlwind of paperwork, financial conversations, and lots of deadlines. For many families, those deadlines begin to become more of a burden than anything helpful. But, what if you knew that those deadlines could make a difference between your student paying for college and not being able to? Today, we’re sharing four financial aid deadlines for your student to know for college applications! These are important deadlines that could be the difference between getting the financial aid and support you need or not.  To get you started, here are some of the financial aid deadlines you and your student should be aware of: Filing the FAFSA:  The starting point for most types of financial aid is completing the Free Application for Federal Student Aid, or the FAFSA. This will be available online October 1 for the 2023-24 academic year. This application may also meet the requirements for institutional and state financial aid, as well as some scholarships. Make sure you know what your student’s program wants. Technically you have until June 30 of next year to complete the FAFSA. But, it is always best to complete it as early as possible. Some financial aid programs have limited funds, and completing your form early on is the best way to be eligible for those funds.  Individual College Financial Aid Deadlines:  Every college your student applies to will have their own specific financial aid deadlines. Some may be earlier than you think! Many of them are actually in the fall, so take the time to find out those dates now – and you won’t be scrambling as your senior year begins. Note which documents they’ll want. Some want you to file the FAFSA, some want a CSS Profile, and others have financial aid applications of their own or require additional information. If there’s been any big changes at home (major job changes/loss, divorce, etc.) plan to gather documentation for those changes, too.  State Financial Aid Deadlines:  Each state has its own financial aid program, and has separate financial aid deadlines. These are crucial to mark down. Make sure your FAFSA is submitted before your state deadline so that you can be eligible for any state funds. Again, every little bit helps when paying for college!  Scholarship Deadlines:  Scholarships are also considered a form of financial aid. Unfortunately, finding and completing scholarship applications can be a lot of work. Deadlines fall throughout the year, so be sure to mark them all down clearly as you work to find additional money for school. Don’t forget – they might require different information than the financial aid forms, so it is best to leave plenty of time for this process as well!  How do you manage these deadlines?  Looking at all of those deadlines can be stressful! So, my biggest suggestion is to make sure you’re tracking all of those deadlines carefully. I often recommend setting up some type of scheduling system. It can be as simple as a giant wall calendar, or as sophisticated as an Excel spreadsheet. You can even use Google calendar and share it with your other family members. Whatever you do, it is also helpful to set a mental deadline of at least one week ahead of each of the official deadlines so that you leave yourself some wiggle room. That wiggle room can help make sure nothing falls through the cracks.  So get out the calendar and start planning your deadlines now, so you won’t be stretched thin in the heat of college applications. You’ll all be thankful you thought ahead! Who are we? CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Questions to Ask Financial Aid Offices During College Visits

During your student’s junior year, visiting college campuses is one of the highlights in the college application process. College visits are the best way to truly understand the vibe of each school. It’s also a great time to have your questions answered. During these visits, there’s a lot to do: see housing, meet current students, explore campus, and look at the city the school is in.  But, it’s important to remember that during these fun moments, you and your student need to determine if this is the right school for them. A perfect fit isn’t just based on campus life. It’s also rooted in the costs financially. Each college that your student considers needs to be reviewed financially. During your campus visit, make a stop at the financial aid office. Whether or not you think you’ll qualify for financial aid, it’s worthwhile to chat with the financial aid office. Here’s four important questions to ask financial aid offices during college visits!  #1: Is financial aid need-based or merit-based?  Financial aid is not always based on your financial need; sometimes it is based on your academic merits. Understanding which method the school offers is important. Need-based financial aid reflects your family’s financial position. If your family is not wealthy, it makes sense to look at need-based institutions. Merit-based means that money is awarded based on the applicant’s skill set, and financial need is not taken into consideration. If you have strong academic, athletic, or artistic skills, it might be more effective to search for merit-based scholarships or grants. Knowing the school’s system and your family’s situation is key when determining potential financial aid.  #2: What are your deadlines for financial aid applications?  Throughout the college admissions process, there are many deadlines floating around. Ask the financial aid office to clarify their specific timelines so that you don’t miss a single one. Once you know the deadlines, it’s important to submit paperwork and required documents at least two weeks ahead of the cut off.  #3: What are your financial aid particulars? Your family needs to understand the actual reality of financial aid. Determine how many students actually receive financial aid – and how much. It’s important to also determine how many years they can receive aid. While you’re in the financial aid office, it’s worth asking how many students actually graduate and find jobs in their related fields. Don’t be afraid to ask about pay, either. Your student needs to understand earning potential vs. loan payment needs. This may sound like a lot of questions but it’s necessary to determine how much financial aid you might truthfully receive and be able to pay back.  #4: What else can I do to help with college costs?  Sometimes the financial aid office is aware of additional opportunities that could change the bottom line for your family. They may know of job opportunities, scholarships, or other important ways to bring in money to help your student. It never hurts to ask!  College visits are about so much more than just finding out if you like the campus you’re visiting. Take the time to speak with students, professors, and most importantly: the financial aid office. All of the information you learn during your visit will help you make a more informed decision as you begin the college admissions process.  Who Are We? CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter. Learn more about paying for college in my book, Secrets of a Financial Aid Pro, which also contains information on completing the FAFSA, applying for financial aid, saving for college, and repaying student loans. Order it now and learn how to get more actionable data out of college visits.

How to Estimate How Much College Actually Costs

One of the most important components of your student’s decision about college is finances. While the financial aid office at schools that your student has applied to will be sending information, your family also needs to consider other budget line items that impact how much college actually costs. Understanding both of these numbers will help you estimate how much college actually costs! Some examples to consider include your student’s living expenses, travel costs, and other incidentals. Believe it or not, these other items add up quickly! You should also be considering how long financial aid actually lasts, the length of time to graduate, and post-college income earning potential in the field. If you’re not sure how to estimate how much college actually costs, here’s a few questions to consider:   How long does the degree take vs. how long your student will receive financial aid? Try to get a clear picture of exactly how long it takes most students in that area of study to graduate from that specific school. You should also consider what you already know about your own student’s academic abilities. Do you expect them to take longer? Once you have a better understanding of the length of the program, compare it to the offered financial aid. Do the two amounts of time match? Be sure to look at grants and scholarships carefully – as they don’t always last a full four years. It’s important to also review eligibility requirements and what happens if a student fails to meet them at any time. The amount of assistance being received could be a major point in determining which school your student attends.  Are there any additional costs for their major? Some areas of study accrue additional costs, which may not be included in the standard cost calculation. If your student is required to travel for any reason, find out if that is an additional amount that your family will have to pay. For some art or music-related majors, concerts, recitals, and performances may require extra fees. If there’s additional learning opportunities, it’s critical to understand the out of pocket cost. Otherwise, those fees could eat up your cash! Finally, if your student is interested in studying abroad, know the numbers. Request information to understand the financial picture of that opportunity. All of these numbers need to then be considered in your planning.  What is the amount of student loans your student can actually repay? Be very sure you completely grasp how much of your financial aid package comes in the form of student loans. Student loans can impact both parents and students, as well as younger family members too. Take the time to calculate the total burden placed on all family members once the monthly repayment begins. That number should then be compared with potential income earning abilities post-graduation. Ask the financial aid office how many students in your major get a job in that field. You should also discuss what initial salaries are like and where the jobs are located. Even students in medical or business fields might find that they struggle initially to get on their feet until they are able to start earning additional money. From the information provided by the financial aid office and these other line items, you should be able to make an educated guess on college costs for your student. If the college’s website does not provide sufficient insights, you can turn to the financial aid office for further information. All of these questions obviously impacts high school seniors deciding on colleges this spring. But, even if your student is a junior, your family should consider the final number when deciding on which schools to apply to. Money impacts college decisions, it’s a fact. Your goal should be to as informed as possible when deciding on schools.  Who Are We? CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

5 Tips to Make Your Final College Selection for National College Decision Day

It’s that time of year: college decision day is quickly approaching. For some students who have already decided on their college choice, they’re all done and they know what the next four years hold for them. But, for others, there’s still some decisions to be made about how they will be spending the next four years of their lives. National College Decision Day is on May 1st each year – and is the deadline for students to choose a school, submit their acceptance paperwork, and make their initial deposit to seal the deal. Although May is still a few months away, the time will go quickly.  Choosing a college is more than just a financial or emotional decision. There’s many components to consider. As your student is planning for National College Decision Day, here’s a few tips to help them make a final decision: Talk to someone:  You don’t have to make a decision all alone! Use your social support systems to make your decision. Talk with parents, siblings, friends, relatives, trusted teachers, and your counselors to help decide which path to take. Take the time to figure out what’s holding you up and discuss that with people you trust.  Compare in two ways: Like we previously said, choosing a college isn’t just about finances or just about how you feel emotionally. Look at the decision from both sides. Take all possible costs into consideration, including travel and out-of-pocket living expenses. If your emotional favorite’s financial aid package won’t cover the bill, you might have a really tough decision to make. Remember to compare the financial aid award letters you’ve received so you know exactly what you’re being awarded – and what you have to repay. Although it’s difficult, a bigger loan to pay back might tilt the scales in favor of one school over another. Make one last effort at increasing financial aid:  Many financial aid decisions were based on your family’s previous year’s experiences.  If your family faced financial problems or had major changes occur within the last year, put together a compelling case for more help. Reaching out to the financial office is one way to attempt to increase the financial aid you might receive to close the gap.  Check your bank balance:  If you do have an idea of the college you want to attend, find out how much money you will be expected to pay out of pocket. If you don’t have enough money in the bank, you’ll need to earn more by then or learn a lot about student loans in a hurry. This is also a great time to look at work-study options and continue looking for scholarships to buffer your bank account!  There is still time to look for scholarships:  If your final decision really comes down to money, it’s time to look for scholarships. Spend time researching options locally and nationwide. Remember to look for scholarships related to your interests, your demographics, and the major you’re choosing. Start those applications and put effort into them!  Once you’ve taken the time to review your options and look at your final decision from all angles, it’s time to submit your acceptance documents to the college of your choice! You’re on the way to finding your place in the class of 2027! Remember to let the colleges you’re not choosing to attend know that you’ve made your final decision so they can contact their waitlist students. Now you (and your family) can breathe a sigh of relief!    Who Are We? CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college.  To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

How Much of a College Education Can Your Family Afford?

By this point in the academic year, families of high school seniors are done with their college applications. Now, comes the fun part: waiting for acceptance and financial aid letters for final decisions. If your student was accepted during early admission, their decisions are likely made. For students who went the regular application route, the final decision may still be up in the air. By May, everyone will have to make their final commitment, though. One of the key factors in that final decision is how much college your family can afford for your student. So, the gap between your income and expected college costs must be considered.  Based on your FAFSA filing each potential college send a financial aid package letter to your student. As these letters come in, it’s time to break out the calculator and determine the total expenses involved in that school, and how much financial aid you’ll be eligible to receive. Now, you’ll be able to determine the gap between your EFC and total college costs.  What does “the gap” mean? The difference in your EFC and the amount of offered financial aid is called the gap. This is the amount of money your family will have to find to make up that difference. The gap you’ve uncovered will absolutely play a role in your student’s choice of school. While some families may decide to choose the second-choice college (where the financial burden might be less), others may believe their first-choice (and more expensive) school is the best option. If that’s you and/or your student, here are a few ways to reduce the gap:  How do we close the gap between your income and expected college costs? Ultimately, closing the gap comes down to your family’s priorities and needs. Here’s six ways you can look to close the gap between your income and expected college costs. Talk to the College:  The financial aid office might be willing to take another look at your application. Let them know if there have any major changes in your life that could impact your ability to pay the necessary amount. Make sure to prepare documentation the college may request. This could be changes in income, jobs, or dependents. Ask the college if there are any other ways to pay less money out of pocket. Look for Scholarships:  Not all scholarship applications are due in December. There are many types of college scholarships that have deadlines throughout the year. Spend time completing your searches and the applications. Hard work can pay off and you may find some “free” money here. Don’t forget to search locally for scholarships too, based on your student’s interests and background.  Think Carefully About Private Student Loans:  Private student loans do not have all the benefits of federal student loans. However, if a school is that important to your student, it may be a potential solution to close the gap. Be sure to agree with your child on payment responsibilities well in advance.  Ask for Help:  Family members might be willing to contribute to your student’s college education. Instead of a gift at graduation, create a specific list of financial needs and ask for help in particular areas. Use the money as planned – saving it for books or supplies and/or paying the bills down for your student’s college education.  Have a Serious Money Talk: Have the whole family get together and really look for ways to save money, so there will be more available in the college fund. Consider cutting back on car payments, cell phone and data plans, eating out, streaming services, and clothing or other personal budgets. Anything saved goes directly into the college fund. Take the time to talk to your future college student about living on a tight budget, reducing personal expenses, and buying used or electronic books for classes, too. Anywhere that expenses are cut means more money available for to fund a college education.  Earn More Money:  Honestly, one solution to the gap problem is to find more money. This might involve second or part-time jobs, selling items online, or holding a family yard sale. If your student has a job, discuss where their paycheck is going and continue to save it for college costs.  Closing the financial gap to pay for college comes down to being creative and determining the priority of your family and student. Work together to determine the best options for your family’s needs. If your student is a high school junior, consider planning in advance and working to save extra funds now. Who We Are CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

5 Money Lessons to Teach Your Children for Better Financial Health

As parents, there’s so many things we need to teach our children. How to manage money is definitely one of those things. Learning how to be fiscally responsible is an important life lesson for every child. The money management skills we teach our children will define how they handle money, view money, and use their money. As you begin to think about funding your child’s college education, teaching these important money lessons should be one of the first places to start. Children who have a healthy relationship with money early on will understand the significance of the choices they’re making as college decisions get closer. Your Own Relationship with Money Before teaching your children about money, it’s necessary to pause and reflect about your own relationship with money. Are you someone who plans and saves, or buys on credit? Do you think about your future expenses, retirement, or plan for unexpected events? Does your family operate off a budget and have open discussions about money? These are just a few questions to ask before you begin to teach someone else about finances. Our relationships with money can be complicated – and it’s critical that we understand how we look at our financial picture.  When families begin to add a college education to the mix, it’s easy to feel like the decision is emotional and not based on a financial foundation plan. Instead, here are five lessons that you can share with your children to help them (and maybe you) become smarter about money. These lessons will assist you  to build a strong foundation so when it’s time to make financial decisions about your child’s future, everyone involved feels educated and aware of the choices they’re making.   5 Money Lessons to Teach Your Children Budgeting Budgeting can be difficult, especially if it’s not something you’re used to doing regularly. People who use debt as a way of paying for everyday or exceptional expenses often find themselves in a downward spiral as interest builds. For many people, that debt continues to build until it’s almost impossible to stay above water. Teach children from an early age about what a budget is and how to use it. Encourage them to save a little bit of their allowance or gift money, and put the rest towards current purchases. This small habit early on can be life changing. Earning Even from a young age, there should be a clear connection about earning money and the ability to make purchases. Try to avoid simply buying everything for your child. Instead, look for ways they could earn money to make the purchases themselves. Combined with traditional chores, your child will be learning the value of hard work and expectations for adulthood. Debt Many young people do not have an understanding of how to use debt to achieve goals. Instead, they use credit cards or personal/student loans to pay for their expenses, resulting in a heavy financial burden. This kind of debt can take years to overcome. Work with your child to understand the meaning of debt. If a child is interested in a larger purchase, consider acting as the “bank”. Setup a loan and require payments back (with interest!) as an important lesson in money management.  Needs vs. Wants Another valuable lesson to teach your children is the difference between “needs” and “wants”. For financial health, there must be a balance between the two. For example, spending all of your money on a sports car and saving nothing for college isn’t the best way to start your adult years. Even early on your children can understand that not every time you want something, you buy it. In fact, learning how to balance needs and wants early on will help create a more positive attitude towards money.  Understand that College Costs Money As your child gets closer to college age, begin having talks about what funding college really looks like. They need to understand that college comes at a cost. Have discussions with your child all through the school years about college costs, financial aid, student loans, and look ahead to make sure that the income potential exceeds the investment requirements. Helping your child understand the seriousness of the investment they’re making can be an important financial tool.  By teaching your child to become more financially literate, you are giving them foundational tools they will use the rest of their life. Learning money skills early on will help create useful discussions for your family when big decisions come – like where to go to college and how to pay for it. Children who possess lifelong money skills are better prepared to make sound financial choices when it comes to their college education. So, passing on these skills is a must!  Who We Are CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter. plan it

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