Where do I Start to Figure Out My Student's Path #3 - Finances

Anne Johnson

Feb 29, 20243 min read

Feeling confused, overwhelmed, or lost when figuring out your student's educational path? Take a deep breath – you're not alone, and help is here! It's never too late to start, and I'm here to show you exactly where to begin. Today, we are continuing our series on where to start when figuring out your student's path after high school. This is Step 3 - Be Realistic about Financial Constraints!

Be Realistic About Financial Constraints

As parents, one of the most crucial aspects to consider when helping our students find their path is the financial aspect. From college tuition to extracurricular activities and beyond, understanding and planning for financial constraints is essential. Before embarking on the journey of high school planning, it's crucial to understand your family's financial landscape clearly. College tuition, living expenses, and other educational costs can quickly add up, and it's essential to be prepared and aware of the financial responsibilities that lie ahead.

Run an EFC Calculator

An EFC calculator is one of the most effective ways to gain insight into your financial situation. The Expected Family Contribution estimates the amount a family can reasonably contribute to their child's college expenses based on their financial information. By inputting details such as income, assets, family size, and number of students in college, the calculator provides an estimate of the expected financial contribution.

The one I recommend is the Collegeboard's EFC Calculator. It is linked at the bottom of this post. This will give you a broad idea of what all schools will expect you to contribute to the cost of college to the extent that you can, even though each school manages its financial aid process differently. If you have a specific college in mind, you can get a more accurate estimate of your actual cost using the net price calculator on its website. Net price is the total cost of attendance minus the grants and scholarships you receive from the college. A college's net price calculator uses the financial aid policies of that college to calculate its estimate. I have included a link below to search for specific colleges' net price calculators.

Why Start Early?

The earlier you run the EFC calculator, the better prepared you'll be to plan for future educational expenses. Starting this process at the beginning of your student's high school journey allows you to understand your financial constraints and adjust your plans accordingly clearly.

To quote Brene Brown, "Clear is kind. Unclear is unkind." being transparent with your student about financial limitations can help manage expectations and avoid disappointment later on. These are hard conversations, but they set your student up for success.

Planning for the Future

Once you have a clearer picture of your expected family contribution, you can explore various options for funding your student's education. Whether saving for college, applying for financial aid, or exploring scholarship opportunities, having a proactive approach to financial planning can alleviate stress and ensure that your student's educational goals remain within reach.

This information will also be crucial for the eventual process of narrowing down the schools that your student will be applying to. As I mentioned above, all colleges calculate financial aid differently, and they award different amounts of aid to students. As you look at potential schools for your student, the amount of aid they provide might be necessary depending on what you think you will be expected to contribute.

Come back next week. We'll do step 4 on where to start to find your student's path, and we will continue building resources, communities, and skills together. I look forward to your conversations with your students, teens, and young adults. Let's make this journey joyful and transformative for them!