This week is Money Smart Week which aims at helping people
manage their personal finances. Events are taking place the present ideas and
helpful programs to keep more of your hard earned cash in your pocket, and maybe
make it grow a little bit.
So why am I talking about Money Smart Week – what does it
have to do with career and college planning? A big piece of what we talk about
at ICAN falls under the heading of financial literacy – or helping students understand
and manage their finances.
Managing your finances places a HUGE part in your ability to
go to college and we love talking to students about budgeting, understanding
college costs, and evaluating the big picture of career and college choices.
Your future opportunities and outlook all fall under your
ability to be financially successful – meaning can you earn enough to sustain
the lifestyle you want to live?
We start with career planning because your career determines
your income level. As early as
elementary school we have ideas of what we want to be when we grow up. When we’re
young these are dreams. As we get older and reach high school, it becomes time
to start researching and making decisions based on facts that help turn those
dreams into an attainable future.
Your starting salary helps you understand your future budget
capabilities and helps you understand your education and training requirements,
and your budget to acquire those skills.
Financing your education after high school, whether it’s an
apprenticeship program, a career-training program, or a two- or four-year
degree, takes planning. Even if you cover everything in loans, eventually you
have to pay those back – what’s your plan?
We like to start with the expectations of the career you are
pursuing. What’s the starting salary? Researching this piece lays the
foundation for your understanding of what’s affordable. You can find salary information through the career assessment tool ACT Profile or through the Bureau of Labor Statistics.
If your starting salary is $30,000 then you can responsibly
borrow up to $30,000 for your entire degree or $7,500 each year of a four-year
degree. At $30,000 you would have an estimated student loan payment of $300 per
month for 10 years after your complete your degree. That’s the top end of what
you could reasonably afford on that salary while leaving enough for rent,
groceries, and other expenses.
Being smart about your money is being smart about your life
plan. The beauty of being young is that your life is ahead of you and you don’t
have to have everything figured out yet. However, there are a few choices you
make now that will impact you for the rest of your life. Taking on too much
debt is a big one.
So be smart and learn about money management. Take part in a
MoneySmart event near you this
weekend or visit with an ICAN
advisor about your financial plan for your future education. There are lots of
options that we’d love to discuss. You can also check out the Money
Management section of the ICAN website for lots of information, advice, and
resources to help you make informed decisions about your future.
