Preparing Your Child for College and Beyond

Show Notes

CONSIDERING THE FUTURE POST-HIGH SCHOOL

Rob discusses the pressure high school seniors and their parents face concerning post-secondary education and emphasizes the importance of aligning educational choices with financial realities. He stresses the goal of avoiding college debt through early savings, exploring scholarships, and considering alternatives to a four-year college, such as technical schools, online courses, and military service.

• Financial planning for education should begin early, incorporating discussions about affordability and scholarships.
• Exploring educational alternatives can provide viable paths that align with career goals and financial constraints.
• Completing the FAFSA is essential for all college-bound students to assess eligibility for financial aid, regardless of expected qualification.

PREPARING FOR THE COLLEGE TRANSITION

Transitioning to college is a significant step for students and parents alike. Rob advises parents to discuss with their children the costs and values of education, the importance of academic success, available school resources, and the necessity of budgeting and managing credit responsibly. He also highlights the importance of instilling moral and financial values as students step into greater independence.

• Understanding the cost-value ratio of education and encouraging part-time employment can foster responsibility.
• Academic success is closely tied to career opportunities, emphasizing the importance of educational achievements.
• Discussing budgeting and credit card use is crucial to prevent financial missteps during college years.

NAVIGATING POST-COLLEGE TRANSITIONS AND BOOMERANG KIDS

Rob touches on the challenges young adults face in transitioning to the workforce and the reality of "boomerang kids" who return home due to economic pressures. He cites statistics indicating an increase in multigenerational households and suggests ways to make this arrangement work, such as sharing household expenses, setting clear expectations, and encouraging financial independence.

• Letting go is a necessary part of parenting, allowing children to grow into independent adults.
• Trusting in God's care for their children can ease parents' concerns during these transitions, fostering faith and resilience in the face of change.

ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:

• I'm interested in making additional payments to my mortgage and wondering if making small extra payments monthly has the same impact as making a larger yearly principal-only payment.
• I'm looking to invest $20,000 for my grandson's future and want something hands-off and tax-efficient, considering mutual funds or indexes.
• I'm 69 years old with about $300,000 in a 401(k) and am considering an annuity with a lifetime benefit. I'm also concerned about long-term care options as I have no children and am divorced.
• I'm 72, still working, and have a Thrift Savings Plan. I'm wondering if I'm required to take the Required Minimum Distribution (RMD) while I'm still employed.

RESOURCES MENTIONED:

• Principal Reduction Calculator
• Find a Certified Kingdom Advisor
• Schwab Intelligent Portfolios
• National Christian Foundation

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