Planning for College with Alicia
2024 will mark the end of Martinis and your Money in October after 10 years of podcasting. The good news is that the year is just beginning, and I still have 9 months of amazing new content to share with you. Over the next 9 months, I’ll be delivering to you the best of the best. The best of what I’ve learned over the past 9 years of podcasting, the best guests, the best topics, and so much more.
Each month will be a new theme and the theme of February is children. If becoming a parent is a life goal, you have to prepare for the financial challenges of having children and college planning is certainly high on that list. Joining me today is Alicia Lazarto, COO of the Financial Gym, and more importantly parent to two college-aged kids to talk about helping your children find the best college if that’s where they’re headed, why you should budget for campus tours and preparing for the eye-opening expenses of sending them away that have nothing to do with tuition, room and board.
What are we drinking?
Alicia - Veuve Bubbles
Shannon - Pommery Bubbles
Podcast Notes
Planning, Visiting, and Applying for College
Shannon and Alicia have been talking about college planning for the last few years as their kids have been going through the process, and they wanted to share what they’ve learned throughout the experience with the show.
Each child will take their own unique path and as a parent, you have to support them through it and ensure they’re set up for this next chapter. College is expensive, and you have to plan how to pay for it as a family.
Taking out student loans at 18 years old will directly impact financial health after graduation. They see it with clients at The Financial Gym who are depressed or feel like they were fooled. It’s important to have the conversations together as a family before signing for the loans.
Colleges are looking for well-rounded students and the competition is fierce. It’s good to start thinking about this as early as sophomore year. You can make college visits part of your regular travel before applying to any schools or start visiting once you’ve narrowed down the options. You will get a vibe on campus, so it’s important to visit.
Once you have the financial aid package, you can continue the conversation with the financial aid office. Start calling them to see if any other scholarships or additional aid are available. For private schools especially, additional money may be available for your child. Always come to negotiations in good faith and see what’s out there.
You do not need to pay a third party to help your kids apply for college or write scholarship essays. Lean on the resources available for free through the high school and guidance counselor. You can figure this out together, it just takes time and patience.
Financial Aid Packages
Start the money conversations early. Your child should be very involved throughout this process. It’s best to apply for financial aid once you’ve narrowed the schools to a few options.
Financial Aid packages will be awarded from each school based on the information from your FAFSA (Free Application for Federal Student Aid) form. Some private schools may request the CSS (College Scholarship Service) form.
No matter your financial situation, you must fill out the FAFSA form. Don’t be intimidated by the process. The forms generally open on October 1 and close on June 30. When filling out the forms, it will ask which schools your child is considering and automatically send the information to those colleges.
Stay on top of the deadlines. Your state and specific schools may have different deadlines than the general federal deadlines. Look those up and plan to sit down to complete the application. The process isn’t difficult, but you must file your taxes on time.
Your child may be feeling overwhelmed with everything going on. Have them sit with you and do these applications together. They will have to review and sign certain forms and documents and doing this together now will set them up for success in the future when they have to communicate with the school on their own.
As you create accounts and go through the process, write down all of your usernames and passwords and your child’s usernames and passwords. Once they’re away, they will likely forget in the excitement of everything going on, and these forms have to be recertified each year.
After this stage, the school will communicate with the students directly, so taking the time to do this together now will set them up for success and more independence. The process isn’t fun, but it is absolutely worth taking your time to complete it thoroughly.
Beyond Tuition, Room, and Board
Once the acceptances have come through and you’ve filled out the FAFSA, it’s time to budget for supplies, technology, and living needs. How much you need to budget will depend on the facilities and your child’s specific needs.
Plan for the travel costs if your child is going to school far away from home. They will need to come home at certain points during the year, and you’ll want to plan for the tickets or gas costs.
They will need everything from a laptop to bedding, shower shoes, snacks, and miscellaneous supplies. They will need to make contributions to the communal space shared with roommates. The earlier you can start saving, the better prepared you’ll be.
All of these costs don’t have to be your responsibility. Talk with your child about saving their own money so they can be prepared for the new expenses of living independently. You want your child to be part of the process as much as possible, so they understand the costs associated with their choices.
Join the parent groups on Facebook. These are fantastic ways to build community, connect with other parents, and have a place to ask questions and learn information from people who have experience with their school.
Have the college conversation with your kids early, and listen to them. They are changing and growing, and they’ll tell you what feels good and what doesn’t. You want them to make decisions from an empowered place.
College is such a special time for everyone, so don’t shy away from planning ahead so they can fully enjoy their experience without the stress of not knowing how to pay for it or the burden of large loans.
Takeaway: My biggest takeaway is to remember that planning for college is more than just tuition, room and board. With the big expense of college, you want to make sure you budget for campus trips so that you and your child can make the most informed decision on where they spend the next four years.
Meet Alicia
Alicia Lazarto - COO of The Financial Gym
Resources Mention in the Episode:
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com, or join the private Martinis and Your Money Facebook Page, and let me know what you want to hear.
In addition to hosting this show, I’m the founder and CEO of The Financial Gym. We are celebrating 10 years of this journey, and now, more than ever, I see the importance of the work we do every day. Rising inflation, the return of student loan debt, high interest rates on mortgages, and volatile stock markets make it a time when you need a best financial friend to help you make the best choices.
At Financial Gym, you get paired with a Certified Financial Trainer, who we call your BFF. Our team has coached clients through every financial season, whether they were living paycheck to paycheck or headed into Financial Independence and retirement. As a reminder, we work with individuals, couples or business owners.
And the exciting news of 2024 is that Financial Gym now has a sister company, FG Advisory Services that’s available for people who are looking for more traditional financial advisory services like asset management delivered by a team that looks and behaves nothing like a traditional financial advisory services company.
We literally have a solution for you no matter where you’re starting from. So what are you waiting for? Head over to financialgym.com to get started today. Our warm-up calls are free of cost and judgment.