Money Management for College Students

By Trilogy Financial
September 23, 2019
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For many young adults, college is the first time they are independently managing their own money. It can be a time marked with excitement and new opportunities, or anxiety and worry. Financial skills built at this time can have long-lasting benefits. Likewise, money mistakes made now will carry on into their future. That is why about 70 percent of college students worry about their finances[i]. However, with the right skills and habits, this can be a great time to lay a strong foundation for their future financial independence.

The first financial decision that most college students encounter are student loans. Before taking out student loans, make sure to explore other financial aid options, such as scholarships and tuition assistance from participating employers. Also, don’t forget the option of going to local community colleges for the first couple of years. If student loans are an option, it is best to resist the temptation to take the maximum amount one qualifies for. Instead, borrow only what is needed. This will help in the long run. College is an investment, and students need to be sure that their rate of return is worth it.

It is imperative that young people know how to budget, but unfortunately, that’s largely not the case. In fact, 43 percent of college students don’t track their spending[ii]. This is particularly crucial for those who have student loans. You can help your young people early by introducing them to the concept of budgeting well before you’re packing them up for college. A budget is not simply an account of where one’s money goes. It aids in making decisions, establishing financial priorities, and staying aware of how your money is working for you. Please always remind your college students that the less they spend now, the more they’ll be able to move forward in the future.

Another common first for college students is the first credit card. Credit cards are a good tool to establish small lines of credit, but monthly balances should always be paid off immediately. Not only does this avoid late fees, but it also avoids interest building on purchases. Also, protecting personal information is imperative. Students need to constantly be aware of who they are giving their information to and what is being charged to their account.

College is a busy time full of “firsts”. These experiences can have long-reaching consequences. Help your college students prepare a solid foundation to their financial independence by providing them with the proper education and tools for a bright financial future.

[i] https://news.osu.edu/70-percent-of-college-students-stressed-about-finances/

[ii] https://www.affordablecollegesonline.org/college-resource-center/student-guide-to-budgeting/

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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By
Jeff Motske, CFP®
October 29, 2020
 

Today, conversations, screens, and ads on how the upcoming election will affect our economy and the American way of life are unavoidable. Naturally, we start to ponder how the outcome might impact our own financial independence. Since market forecasters and economic commentators ever really get it right only part of the time, formulating investment strategy based on “expert” prognostications and financial journalism routinely sets individual investors up for failure.

According to historical analysis, in 19 of the past 23 election years from 1928-2016, stock market returns were positive, no matter which party held office. In fact, during an election year, the S&P 500 has experienced an average return of 11.3%—data that demonstrably counters the stock market doom and gloom headline hysteria generated in the media.

While it is crucial not to be emotionally reactive, it is equally important to plan for economic changes that are realistically possible. Following an election, it is wise to assess how federal policies could impact your plan.

A few takeaways…

  1. Separate your personal politics from your investment decision-making.
  2. Remain calm and focused on your long-term plan: thoughtful planning plus sound decision-making matters.

During his First Inaugural Address, our 32nd President reminded the nation that “the only thing we have to fear is fear itself.” If not kept in check, fear becomes a catalyst for rash decision-making which can impede your path to financial freedom. As always, I am here to talk things through with you, to listen, and to assuage your fear; that’s my job.

By Trilogy Financial
April 15, 2020

When is the “end” of this Coronavirus season? Do we return to “normal” at the end of the summer? I have no idea. However, I do know that when it happens, I will have already given intentional thought to my plan to return because there are some lessons learned and best practices to hold on to during this period of being at home with my family and work. Here are just a few I’d thought I share:

Be Present. Being more present has always been a pursuit of mine. And amidst a shelter-in environment, I’ve been more present without the back and forth to the office. When we are present, we thrive. When we are present, we are listening to our clients. When we are present, we are having more fun with our family. Compare it to being in the zone in athletics. We are solely focused on the conversation or task at hand, making us ultimately more effective as leaders and parents. Be present.

Be Proactive. Even though none of us anticipated the spread of this virus, there have still been plenty of opportunities to be proactive. Despite the uncertainty, a forward-thinking strategy creates freedom and reassurance. Having the flexibility to make anticipated adjustments and then course correct from there helps us weather the difficult days and be ahead over the long-term. This relates to our financial strategy and our day-to-day structure with kids at home. Have a plan, discuss it, and see it to completion. That might result in a strategy to invest in the market with dollar-cost averaging or decide to double recipes so you don’t have to cook as much. Either way, be proactive in life and at work.

Keep Up Good Habits. I have enjoyed the opportunity to connect over Zoom. I’m still improving my ability to read the emotion through the technology but with the effectiveness of virtual meetings, could I plan to only have Zoom meetings on Friday and stay at home? This would give me a few more hours to spend with my family. I don’t think my clients would disagree with that. Give it some thought. Have there been practices at home that should continue? Read for 20 minutes in the middle of the day? Exercise at lunch?

I’ve been grateful for this time and yet I know, this has created immense difficulty for most people. Through my numerous conversations with clients and friends, I’ve been encouraged by the attitude and fortitude these times require. Here’s to having a plan before we return to normal again.

“The most powerful weapon against stress is our ability to choose one thought over another. Train your mind to see the good in this day.” –Marc & Angel Chernoff

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine what is appropriate for you, consult a qualified professional.

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