Preparing for College

Talking about college with your family can be an emotionally trying and frustrating conversation. Part of this hardship can come from a lack of planning and general knowledge of what they should be doing at different points in life so that when it comes time to send children to college, it is an enjoyable experience.

The following outlines planning steps for different stages of life that can help keep families on track and less stressed when it comes time to execute their collegiate plan.

Early Years

Once a baby is born, parents realize just how much life will change, from sleep schedules to dinners with friends. Few at this stage of life are thinking about their newborn child selecting a college to attend, but this early stage is crucial. During this period, parents should start looking at their finances to determine how to save and pay off their student loans or other debts and establish or continue good savings habits.

Elementary School

As children enter elementary school, parents’ job is to help them develop an interest in learning. Activities such as reading out loud to children, checking homework assignments, and devoting time to schoolwork show children that these things matter.

Outside of helping their child develop an interest in learning, parents should begin developing a plan for how much future college costs they think are reasonable to cover for their children. Working with a financial advisor to understand how much college costs and how much the parents can contribute without jeopardizing their retirement helps establish an attainable savings plan. Once that plan is developed, they must implement it and continue to monitor the progress as their children grow.

Middle School

While it may seem early, as children enter middle school, they now play a role in preparing for college, and the burden is not entirely on their parents anymore.

Children’s Next Steps
As middle schoolers, college is starting to become a real idea, and it is up to your child to take an active role in preparing for their future. Students should begin with the following steps:

• Take challenging and exciting classes to better prepare for high school.
• Get involved in community or school clubs and activities that allow exploration of different and new interests.
• Ask close family, friends, teachers, and relatives about their careers and things they like/dislike about their professions.

Parents’ Next Steps
Your child is one step closer to beginning their college career. At this life stage, parents should take the following steps:

• Estimate how much financial aid children may receive.
• Continue the college funding plan that was previously established, or work with an advisor to develop a savings plan if one still needs to be implemented.
• Stay in contact with your children’s teachers and check their report cards to monitor their school performance.
• If any significant changes are noticed, address them and help children find the right resources, whether tutoring or other assistance.
• Continue helping children develop good studying and work habits.

High School

High school is a turning point in the college planning process, and it transfers most of the responsibility from the parents to their children.

Each of the next four years will have steps that build off the prior year and are needed to continue to move children further along in their college planning process.

Freshman Year (Children’s Next Steps)
The first year in high school can be a great start toward attaining college goals. Students should commit to the following:

• Meet with the school guidance counselor to discuss advanced placement classes and learn about eligibility and enrollment.
• Use websites like Career Exploration from the Bureau of Labor Statistics to understand what it means to work in certain professions of interest.

Freshman Year (Parent’s Next Steps)
The first year in high school gives children more freedom, and parents need to allow their children to feel that freedom while continuing to help guide them. Parents should commit to the following:

• Keep saving according to the planned savings program.
• Encourage your child to get involved with clubs and extracurriculars. Remember, the quality of the group matters more than the quantity of groups.

Sophomore Year (Children’s Next Steps)
After getting off on the right foot from the first year of high school, students need to continue that momentum. Students should commit to:

• Start the discussion with their school counselor to learn about colleges of interest and the requirements to attend those schools.
• Visit websites like www.collegedata.com to view GPA, other education requirements, and tuition costs for schools they are considering.
• Start studying and even take a practice exam for the SAT or ACT.
• Attend career information events that the high school sponsors.
• Plan to work over the summer, whether at a job or by taking additional college courses.

Sophomore Year (Parents’ Next Steps)
After a successful first year for the child, parents must keep helping propel their children towards their final goal. Parents should commit to:

• Encouraging children to start a part-time job to teach them responsibility and how to multitask.
• Learn about college or financial aid nights the high school may sponsor.
• Ask questions about what children are interested in and help them seek out colleges that would be beneficial.

Junior Year (Children’s Next Steps)
The junior year of high school is a big year for college testing and searching for the right fit schools. Students should commit to follow the below steps:

• Sign up early in the year and take the PSAT/NMSQT (Preliminary SAT/National Merit Scholarship Qualifying Test).
• Sign up and take the SAT or ACT, depending on which test is required for the college of interest.
• Use a free scholarship search to find ways to earn scholarships that align with your interests.
• Continue exploring careers and the respective earning potential associated with each career.
• Go to college fairs and start college visits to schools of interest.
• Learn about taking Post-Secondary/AP courses at local colleges to earn credits towards your college degree (your high school may cover these costs).
• During the summer, establish an FSA ID at https://studentaid.gov/fsa-id/create-account/launch

Junior Year (Parents’ Next Steps)
When children reach their junior year, the parent’s job is to help monitor and keep them on track. Parents should commit to follow the below steps:

• Create your own FSA ID at https://studentaid.gov/fsa-id/create-account/launch.
• Look at your financial situation and understand if you are on track to pay for the anticipated college costs.
• Take children to college visits.
• Go to college fairs and allow children to lead the conversation with college representatives.
• Learn about Post-Secondary options for children to earn college credits paid for by the high school.

Senior Year (Children’s Next Steps)
Senior year is all about preparing to leave for college and maintaining all the hard work you’ve done during the prior years. Students should commit to:

• Keep up the hard work throughout the year. “Senioritis” can affect scholarship eligibility.
• Continue taking college/AP courses to help earn credits toward a college degree.
• Complete and submit the FAFSA when it is released (October 1st ) and any other financial aid applications for selected schools. Deadlines for these forms are typically in early February.
• Start applying to the selected list of schools.
• Visit the college where acceptance has been granted and compare the financial aid and scholarship offers.

Senior Year (Parents’ Next Steps)
Senior year is the time for parents to prepare themselves for their children leaving for college and to ensure they continue to work hard. Parents should commit to:

• Help children complete the FAFSA.
• Look into potential benefits from Federal income tax credits.
• Encourage and work with children as they tackle these life-changing decisions.
• Encourage children to keep taking Post-Secondary/AP courses.

Saving for College vs Saving for Retirement

Saving for retirement and a college education simultaneously is a challenge. If funds are limited, we suggest funding retirement before contributing to an education fund or paying college expenses. Ideally, college and retirement should be part of the same financial plan, but families can expect some trade-offs as they try to balance these goals.

If parents are not planning to or cannot cover 100% of their children’s college expenses, discuss the subject with them. Together, they can evaluate less expensive colleges before visiting campuses for schools with tuition that exceeds the budget. Look at student loans, scholarships, and grant options. Also, talk to children about working part-time to help with expenses.

Conclusion

College planning can be daunting, and it is very easy to “kick the can down the road,” but by starting early and monitoring the plan, families can work through this smoothly. The most significant points to remember are to talk openly and establish real goals so that there are no surprises with expectations when it comes time to send children off to college. Remember, a Sequoia Financial Group advisor is always ready to help you plan for the future your family deserves.