Episode 05 | Pre-planning for College Savings
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0:00:00.6 Speaker 1: Welcome to Your Wealth Journey Podcast, powered by Bradford Financial Center, where we'll always share how small changes equal big results, because your wealth journey is our focus.
0:00:13.3 Shallon Weis: Hello everyone. This is Shallon Weis and Jim Tausz, financial planners for Bradford Financial Center, and today we'll cover the wealth journey topic of college planning, and more specifically, we'll explore the financial strategies for parents and students on how to pay for college. So whether you're a parent listening with us today or a college bound student, we'll be discussing how to pre-plan for the financial part of the college journey. So throughout this series, we've discussed some of the various stages of college budgeting. First, we covered the early years as parents, and this is a good listen if you're fortunate enough to start planning early. In the last podcast, we explored smart moves you can make to be in good financial shape when your child is graduating. And today, we'll fast forward to the next stage of ramping up a college savings in the high school years. So if college savings caught you off-guard, you're not alone, but there are some strategic moves you can make to put you in a better position with your college-bound student. Then join us next episode, where we help you with the last minute moves. This is when budgeting for college wasn't even on their radar and you're months from your child choosing their desired college. So stick with us to the end of our episode today, when we'll share our five-in-five tips on financial topics, and today we'll discuss five smart and creative budgeting tips for college students.
0:01:28.3 Shallon Weis: So the clock is ticking now, and maybe you haven't had the opportunity to start saving for your child's college education yet, and you're kinda now feeling a tight grip of your final four years of high school creeping up on you. No matter the reason, you've got to put some fast strategies into action to build up savings for the college years ahead. One thing you can do is engage your student. Talk candidly about the options for your student and plan realistically for what's available and set expectations for who will pay for what, and help set them up for success, but coach them on budgeting their high school spending. You know, a high school job. If you've got a long road ahead of you to ramp up savings, it might be a good idea to include your student's earnings into the mix. You'll establish a spending budget based on the part-time income of your student. In our earlier podcast on budgeting, we talked about the 50-30-20 rule, so that would be something to listen to and listen with your college student or with your high school student to have them understand what is needed, what's savings, and what is spending money.
0:02:29.7 Shallon Weis: You could do a parent side hustle. It's time to get creative. If you're concerned about how much money you'll be able to save, you might consider a side hustle. Do you have tutoring skills to bring in extra money after normal working hours? Are you a handyman or have landscaping skills? A great way to bring in weekend income. Think of ways to bring in some extra money and put that towards savings for your student's college. It's important to let you parents know you're not in this alone. After all, your student is going to reap the greatest benefit of their college degree, so it only makes sense that we include ways students can help out with the burden. So let's explore now some additional ways students can do some of the financial lifting. Apply for scholarships. Some organizations and schools offer full ride scholarships that cover all of your college expenses, and don't overlook the lower value scholarships too, because they can add up. Consider local organizations, like 4-H, Rotary Club, industry-specific scholarships, churches, and even your employer may offer one that you're not aware of. We recommend you start asking folks about scholarships in your community to learn about these hidden gems.
0:03:34.9 Shallon Weis: Work during the summers. Every little bit counts. You could also find a part-time job during the school year, but the summer is a perfect time to get more hours and build the bank for tuition. For example, my boys worked summer jobs. They did tree trimming, splitting wood, so they had some extra money for college. And they could also get AP credits. So AP courses in high school help you save on the cost of credits in college. Hey, we recognize that this level of academic dedication is tough, and because it takes lots of study and time, your student may not have tons of time to balance a job during the school year. But academics matter, and if your student has it in them to succeed at this, the scholarships open up. Start by talking with the academic counselors in your high school early about this to build out a plan. A good side hustle may be scrap metal. For example, for extra money, my husband would scrap metal on the side. So some financial planning tools you can use.
0:04:29.3 Speaker 1: In our last five minutes, we'll bring listeners a round up of five smart ideas they can apply to their own wealth journeys. So let's get started with this episode's five-in-five.
0:04:40.1 Shallon Weis: In today's five-in-five, we dive into five smart and creative budgeting tips for college students. It's easier than you think to save money during college, but it begins with changing your mindset. Entertainment and eating to fit your bank account.
0:04:54.3 Tim Tausz: So here are our Bradford budgeting tips for college student. By the way, you can feel free to share this product with your friends who could also benefit from reduced spending. So let's talk about them one by one. Cash only needs to be the mantra of the day, the talk of the day. This is a basic spending tactic for people who allow credit to creep up and bite them. Only use cash for your entertainment. When bills run dry, you go home. No credit, no debit cards. Cash only. Remember, cash only. This strict rule will pay you very big dividends later on, as you have bills that require your credit card. Two, most places of business have discounts for students, but many students fail to assert the option, so be bold and practice your outgoing attitude by asking every point of sale, "Do you have a special deal for college students?"
0:05:51.2 Tim Tausz: Three, cashing in on community college credits. This is a big one, but you can start this one actually in high school in most cases. Most public schools welcome transferred credits from a local community college. This can be a great way to complete general courses at a very discounted rate during the summer and winter breaks that you might have. In addition to that, you will also be able to take these college credits and use them both for high school and college in many areas. Check with your academic advisor to make sure your classes are transferable, however, before you register. Number four, start cooking and kick expensive habits. Eating in can save considerable money every month. Challenge friends to spend evenings and cook together. Remember, grocery shopping can be expensive, so shop smart. Make meals that give you leftovers and try the idea of make-ahead meals for meal planning on Sunday nights.
0:06:49.9 Tim Tausz: And let's talk about kicking expensive habits. Hey, you're growing up, and it's a good time to grow out of expensive habits like smoking, drinking, video games spending, and so on. Envision where you want to be in four years. Always keep that on not the back burner, but the front burner of your mind. Could your success look different if you leave these habits behind? You've gotta ask yourself that continually. When I went to school, for example, I used to cook hot dogs, and I used to make soup in my coffee pot. That was one way I saved a lot of money. Campbell Soup doesn't cost that much, and yet it fills you up. A hot dog, which could be cooked in a crockpot, Instant Pot, or air fryer is also wonderful, and I might add, very inexpensive. Number five, get to work. Working while you're going to school produces a higher GPA. That's a fact. Don't believe us? Well, that's according to Journal of Population Economics. Students who were part-time had slightly higher grade point averages to students who don't work.
0:07:57.1 Tim Tausz: Why, you might ask? Well, it's because you have to manage your time more effectively. You have to balance what you invest in your effort, and sometimes a little pressure results in actually higher performance. That has been studied and proven. Start with your part-time job and see what you can balance or enlist as a resident assistant, for example, on campus. But that paycheck, save it. Listen to what I'm about to say. Remember this, you need to pay for college, not for the extra fun. Make that one primary goal all the years or time that you spend in higher education.
0:08:39.6 Shallon Weis: Our financial advisory team has helped countless families prepare for all the important stages of their lives and still get them to retirement. Bradford Certified Financial planners are well-versed in helping clients prepare for this milestone and building college planning into smart financial plans. You can find us on bradfordfinancialcenter.com, or you can find us on Facebook and Instagram. And our address is 215 North Main in Clarion, Iowa, 50525. And our phone number is 515-532-6661, or our 800 number is 1-800-348-4419.
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0:09:15.6 Speaker 1: Thank you all for tuning into Your Wealth Journey Podcast, powered by Bradford Financial Center. Be sure to tune into our next episode on budgeting for college, ramping up college savings in the high school years. We'll explore smart strategies parents and students need to know. Securities offered through United Planners Financial Services Member FINRA SIPC. Advisory services are offered through Bradford Financial Center, a registered investment advisor. Insurance services offered through Bradford Insurance. Tax and accounting services offered through Bradford Tax and Accounting Network. Bradford Financial Center, Bradford Insurance, and Bradford Tax and Accounting Network are not affiliated with United Planners. Neither Bradford Financial Center nor United Planners provide tax or legal advice. This podcast is for general information and educational purposes only, and not intended to be specific advice for any individual. Consult your financial professional regarding your personal situation. All investing involves risk, and there is no guarantee that any strategy will be successful.
