According to Curtis Krietzberg, CFA, MBA, a financial planner in Red Bank, NJ, and principal in Krietzberg Wealth Management, the college funding talk with your child should happen before they get to high school so they have several years to prepare. “If parents never have a discussion about college funding, some kids may assume their parents are paying for everything,” says Krietzberg.

Whether or not you are not paying for all, or some, of your child’s college education, here are five things to ask yourself first, according to Krietzberg.

1. Do You Feel Obligated to Pay Your Kids’ College Costs?

Many parents feel a strong moral obligation to pay for their children’s college expenses. “I talk with many parents who feel a strong desire to pay for their kids to go to college, only to have to work longer or experience a different retirement than they had planned for," says Krietzberg. "Regardless of any moral obligation you might feel, you are not obligated to give up your retirement savings to put your kids through college. You want your children to understand if and how you’ll help with college expenses by being honest with them and telling them exactly what they should expect. This way, there will be no surprises,” says Krietzberg.

2. Should Your Kids Pay for Some of Their College Expenses?

“I think it’s a great idea for kids to pay some college expenses,” says Krietzberg. And Krietzberg says that asking kids to take on some financial responsibility is a good idea even if parents plan to pay 100% of expenses. “Ask your child to pay something, such as one out of the four years, or if you pay for tuition, they pay for room and board,” Krietzberg suggests. “This will require your child to get a job, save money, and stick to a budget. And, of course, if you are not able to pay 100%, your kids will need to chip in and you’ll have to help them understand their responsibility.”

3. Does Your Kid’s Chosen School Have a Good Return on the Investment (ROI)?

“Compare the total cost of college with the potential earning power of your child’s future career,” says Krietzberg. “If your child is pursuing a career with low to moderate salary and growth potential, going to a school with more expensive tuition usually does not mean higher than average future earnings,” Krietzberg says. In certain cases, it may make sense to go to a school that has an expensive tuition rate. However, if it does not offer a good ROI, Krietzberg suggests encouraging your child to consider a lower-cost school to save on tuition expenses.

4. Have You Considered All the Ways to Spend Less on College?

Scholarships help reduce costs, and encouraging your child to do well in school and volunteer in the community can increase their chances of earning scholarships. “Also, many states offer free community college to students who excel in high school,” Krietzberg says. You can also consider colleges close enough so that your child can live at home to cut room and board expenses. Another way to save is to consider finishing college in less time. “High schools generally offer Advanced Placement courses that provide college credit, and some high schools partner with colleges on dual enrollment in college courses while still in high school,” says Krietzberg. “You can deduct 1 or 2 years off college with one of these options, which saves a lot of money.”

5. Is College the Right Path for Your Child?

The last thing you want to do is push your child into going to college if he or she is not yet ready or feels that college is not for them. “If you push your child to go to college, and it does not work out, that’s a large financial loss and can create an emotional burden for your child as well.” Instead, Krietzberg suggests helping to guide your child in other directions if they are not confident about going to college. “Taking a year off, getting a job, building up a savings, and starting college later might improve the odds of success for those kids not ready to start college right out of high school,” says Krietzberg. Trade schools and the military are also good choices for kids who do not think college is for them.

College is not for every child, and paying for their kids’ college education is not for every parent. “No matter how you choose to help your child with college expenses, there are many ways for your child to achieve his or her dream of a college education, while you also achieve your dream of a comfortable retirement,” Krietzberg says.

Curtis S. Krietzberg is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. Krietzberg Wealth Management is a marketing name for registered representatives of Lincoln Financial Advisors Corp.

CRN-5723130-060623.

Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.

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According to Curtis Krietzberg, CFA, MBA, a financial planner in Red Bank, NJ, and principal in Krietzberg Wealth Management, many young adults could be better equipped with the financial knowledge to handle their own finances. “We see it all the time,” Krietzberg says. “We hear from the young men and women we speak with that they were never taught how to read a bank statement, let alone how to save for a large future expense, like graduate school, a home purchase, or a wedding.”

There are six basic things everyone should know about money, according to Krietzberg, in order to be financially independent.

1. Spend within your means

Once you have a job and are earning an income, it is a good idea to put a budget on paper that can help you understand how to live within your means. “Include all of your typical monthly expenses, like rent, utilities, cell phone bills, car payments and insurance, and groceries,” explains Krietzberg. “Once the basics are accounted for, you’ll see what’s left. With the remaining income, you should start to set aside specific amounts for savings and finally, some that can be used for special purchases or vacations.” You might find it hard to stick to a budget, but a budget is important to make sure your financial future matches your goals, said Krietzberg.

2. Pay yourself first into a savings account

Once all your expenses are paid, the first thing you should do with the remaining amount is to pay yourself into a savings account. “Treat yourself, go out to dinner or buy something special, enjoy the income you are earning,” Krietzberg recommends. “But do not wait too long to start putting money away for a future that is sure to be filled with large expenses – graduate school, a home, a family. These things will only happen when you save for them.” Just like you pay your monthly rent or utility bill, pay something into your savings account every month. Krietzberg also suggests putting as much as your budget will allow into your company’s savings plan.

3. Avoid credit card debt

Many people often turn to credit cards to fund expenses that their regular income cannot cover. “It is just too easy to put large expenses onto a credit card, and then the credit card bill comes in and it’s not easy to pay it off,” says Krietzberg. “Before you know it, you’re not able to save anything because all the extra income is going to pay down the credit card or the interest charges.” And when credit card debt is carried over from month to month, rather than being paid in full, it affects your credit rating, which can have an impact on your future ability to afford a car loan if you need a new car, or to get a mortgage when you’re ready to buy a house. “It’s best to live within your means, and strategically save for large purchases rather than rack up the credit card bills.”

4. Have an emergency account for the unexpected

Life is filled with surprises, or depending on the surprise, one might call them emergencies. “It is a wise idea to set aside some funds for emergencies,” Krietzberg explains. “Anything can happen, like an expensive car repair, or a major appliance that needs to be replaced – expenses that can take a financial toll on your bottom line. “The best way to help reduce the financial drain is to save specifically for emergencies so the funds are there if you need them.” Krietzberg goes on to say that an Emergency Fund should be separate from your other savings accounts.

5. Get and use the right information to help you make good financial decisions

If you need help understanding how to manage your finances, the best place to start is with someone that knows how best to help. “Financial advisors are partners that work together with you to make sure you are making confident financial decisions,” says Krietzberg. Look for an experienced, licensed professional who can help educate you on budgeting, debt management, investment management, and other financial issues. “Your parents may work with someone they trust, and that person might be a good fit for you also,” says Krietzberg, who works with many of his clients’ young adult children. “Either way, you’ll want to work with someone who is a fiduciary, meaning they have your best interests as their primary goal,” said Krietzberg.

6. Have a financial plan and stick to it

The best way to ensure that all the above gets accomplished is to create a financial plan and follow it closely, says Krietzberg. “You should think about what you hope to accomplish in the next year, two years, five years and more. Based on that information, put a plan on paper and focus on budgeting, paying down debt, and both short-term and long-term savings,” says Krietzberg. “And since salaries and circumstances change, remember to revisit your plan often and make changes as needed.”

For young people who have just started their first job, the future starts now. “You cannot wait to start saving for your future,” cautions Krietzberg. “If the future starts now, your financial plan must start now as well. It is never too early to learn about and implement financial wellness strategies.”

Curtis S. Krietzberg is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. Krietzberg Wealth Management is not an affiliate of Lincoln Financial Advisors Corp. CRN-5663865-050223.

Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.

This press release is distributed by the Newsworthy.ai™ Press Release Newswire - News Marketing Platform™. Reference URL for this press release is here.