Sending your kids for higher education, such as a college or university, can be emotionally and financially challenging. However, at the same time, it is also a benefit as it secures your child’s future. Beth Walker, founder of “Center for College Solutions,” joins Matt DiFrancesco.
She will be sharing her insights regarding how to make the best college decision. Furthermore, she will discuss the costs and the amount of planning that goes in. You will learn to leverage multiple offers when finding the option that has the most benefits and is cost-effective.
Your child’s college can cost you tons of money. This will end up adding more to the list of your financial matters that need to be discussed. But, before you sink in all of these monetary worries, let someone assist you. Schedule a free 20-minute conversation with Matt DiFrancesco from HighLift Financial.
Discuss your family business conditions and other financial matters to let go of the stress and unlock new opportunities. DiFrancesco virtual family office can help you create a vision for your business life and family and guide you towards fulfilling that goal.
Who Is Beth Walker?
Beth is the founder of the Center for college solutions. It is a group of professionals that are committed to making college affordable for all families. She believes that:
“We can educate our future leaders without breaking the bank.”
Beth is also the author of “Never pay retail for college: how smart parents find the right schools for the right price.” Since college planning is a major concern for most parents, and especially with family business owners, I brought Beth onto my team to help my clients navigate the challenges of paying through college and get accurate information regarding student loans.
College – A Multi-Year Project Plan
The hardest part that people had to accept and that Beth had to learn was how much the student needed to be involved in the project plan. In her book, she describes 12 critical components that make or break the outcome of sending your kid to college. These can be further divided into three distinct categories. Each of these consists of 4 components. Here is the breakdown:
- Four critical components for students
- Four critical components for parents
- Four critical components for students and parents
The last category is where both of them come together and collaborate as a family. Parents try to maintain their current lifestyle, go on vacations, make memories as a family, and stay on track for the future lifestyle, which they call retirement. Amidst these utopic plans, along comes this huge cash flow hog called college. This is when parents spin all those plates simultaneously. It is truly a cash flow challenge because it takes a toll on finances that parents can barely afford.
Beth stresses that we need to adopt a very different mindset about education, especially when sending kids to universities. The children will get loans and scholarships for school, but we parents will not get loans and scholarships for retirement.
The Biggest Challenges Parents and Students Facing When Planning for College
The number one challenge is the conventional wisdom around name-brand schools. Beth says that Coronavirus has been a bit of a wake-up call in terms of parents asking themselves, “what is the value proposition that I am paying for? Is the education that I am getting at school really twice the value of what I could get at school y or z?”
It is understandable that this is such an emotional decision. Due to this, Parents set aside their consumer mindset and approach this whole decision-making process with a parent’s heart. However, by looking at it strictly from an emotional perspective, we’re failing to understand how to be a good higher education consumer. In reality, sweeping aside the brand names of schools and all emotions, it is in fact a six-figure investment.
There is a need to cultivate a certain culture in your household around the whole topic of college and figure out why we are going to a certain place? That is the question the student has to answer. “What am I there to accomplish? What mindset do I bring to campus?”
It is indeed critically important that we find schools that are a good fit emotionally, socially, academically for the student. But, the children must be sure that they have defined a good fit on the financial side for their parents as well.
This is where Beth enters and helps families come to terms with a realistic budget for higher education. Rather than the conventional approach of deciding on a particular college first and then breaking the bank to finance the education, she believes in reverse engineering. Once a budget is decided, then they find schools that fit that budget.
In this way, parents can afford college costs, plan student loans, make a satisfactory college choice, and provide the child with the best college experience. The aim is to plan ahead and help your child understand that this decision will be the best one for them.
COVID as a Positive Aspect
In today’s environment, with all the uncertainty regarding, “Are the classes online, is it hybrid? Will it be in the classroom? Am I going to be living on campus? How is all this going to unfold?” Parents have never had a better opportunity to be in a position to evaluate and leverage one offer versus another and position their kids for discounts such as grants and scholarships.
Here is the plan! Create a meaningful list of schools where three or four will create a financial incentive for you and keep your child ahead. Then, you add that to a tax scholarship, using the income tax code legally during the college years to reduce the cost of college. After that, you start to formulate a manageable roadmap that will not derail the retirement plans.
Community Colleges Are Underrated
Modern-day college is unnecessarily complicated. The whole language and processes are confusing. All of it is very costly, and well, It is just not easy. So it would be best if you had a team of people who understand how all the pieces of the puzzle come together. And of course, you have to deal with the student you are working with because it all starts and ends with them. If we come up with a great cash flow plan for four years, but the student takes six years to graduate with an undergraduate degree. Then this six-figure investment cannot be considered a fruitful one.
Beth shares her son’s example, who graduated from high school and still did not know what he wanted to do. So he went to community college to get core classes and some credits. This option gave him some time to figure out what direction he wanted to go. By following this path, his family saved 10s of 1000s of dollars. But, unfortunately, there is a common fear factor that labels community colleges as unfavorable choices for students.
“Why go somewhere for 50, 60, or $70,000 a year when you do not even know what you are trying to accomplish”.
It is smart to knock out those prerequisite classes at a community college price and then transfer in with an associate’s degree and get the degree from the four-year university. This path is financially savvy than going to a costly college and ending up in a program that will not take you anywhere. However, this is an underutilized option.
Parents need to understand what students can borrow from an undergraduate perspective versus what parents themselves can borrow through the Parent PLUS loan. The real crisis is with “Parent Plus loan” debt. Beth helps families understand their best financing options because sometimes, what the federal government offers is not the best choice. For many people, Parent Plus is the easiest choice. However, they don’t realize that there are other options, such as home equity and private loans, etc.
Get in Touch With Beth
Beth’s book “Never pay retail for college: How smart parents find the right school for the right price” is available on Amazon. You can check out the services and get in touch with Beth by visiting the website https://www.centerforcollegesolutions.com/, or you can call her directly at 719-522-2278.
She will save you 25 to 50% on the total cost of college. This percentage is even more attractive for parents with two or three kids. So, if you plan to send your child to college soon, now is the time to give Beth a call!
Schedule a Free 20-Minute Conversation With Matt
Covid has disrupted communication, and most family businesses are struggling to keep their legacy thriving. For example, suppose you are an automotive business owner. You will constantly be looking for ways to secure generational wealth. Well, you must! However, before you scour the earth to keep the brand stable and running, you must have family meetings regarding the business. Are you wondering why? Head over to my blog post related to “Why family meetings are important in family businesses“.
Moreover, you can read my detailed five-step process to analyze your business and family needs to develop a fruitful financial strategy.
If you need financial assistance and someone to mediate those family meetings, then my virtual family office is available at all times. HighLift Financial will help you align your family and business for generational wealth.
Disclaimer
The information compiled and posted here solely represents the opinions and views of the guest. It might not necessarily be similar to the opinions and views of High Lift Financial. The availability of this content only serves educational and informational purposes. It is in no way a substitute for tax or legal advice or professional investment.
Always make sure to consult your financial advisor with any queries related to personal or business planning. DiFrancesco Financial Concierge, LLC. d/b/a HighLift Financial is a Registered Investment Advisor registered with the State of Pennsylvania and subject to the State of Pennsylvania’s regulatory oversight.