Today's article was written by Financial Coach Tonia Peasley, AFC®
It is that time of year where important notifications come into email inboxes and/or mailboxes notifying individuals of college acceptances. It is a time to celebrate the hard work of your student and to make decisions about their futures. Now, more than ever, creating a spending plan for your young adult is important. With the increased inflation reports, and with the costs of everyday goods and services on the rise, knowing how much spending is going on in different categories, gives a baseline to understand how expenses might grow over the next 4-5 years. Here are a few tips to help make good financial decisions before and during the college years.
Use the following spreadsheet to determine how much funding your student will need to meet monthly and yearly expenditures. College monthly and yearly spending plan spreadsheet. Not only will students need to budget for tuition, fees and supplies, they will also need to budget for monthly expenses while living away from home. The spreadsheet can also be used to help determine if there will be deficiencies in providing funding for college.
Once you have a firm understanding of monthly and one-time expenses, use the spreadsheet to start a discussion about how much you, as a parent, will provide toward your student’s living expenses and if you expect the student to contribute. Most individuals leaving home for the first time have no idea the different categories of expenses they might encounter. Using the spreadsheet helps to open dialogue between you and your student to outline some of these expenses and to guide them in making good financial decisions.
Categories such as housing, meal plans, and transportation are addressed in the spreadsheet. The spreadsheet is designed to list these expenses per semester and to list a yearly total. Enable your student with the ability to use the spreadsheet to guide their monthly expenses and to make sure they are living within their means.
You can input numbers directly from financial aid awards to help identify and compare financial aid packages such as grants, scholarships and student loans. Feel free to modify the spreadsheet by saving and copying/pasting columns to compare financial aid awards.
As always, we understand these discussions can be difficult to approach and not always the easiest to have. Our Financial Coaching program is designed to provide clear guidance in debt management, beginning investing and saving, and to provide a framework of financial literacy. Providing Financial Literacy and guidance is an investment that can last a lifetime. We are here to help, just give us a call.
If you found this article useful, you might like the following blog posts:
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.