With the 2019-2020 academic school year around the corner, the JNBA Financial Planning Committee wanted to provide some reminders for parents and students as you prepare for the upcoming school year.
Estate Planning Documents
Once a student turns 18 years old, it is important for them to have documents in place that will allow a parent or guardian to help with health or financial matters if needed, including a Health Care Directive and Durable Power of Attorney.
Create a Budget
This is a skill that will be helpful in the student’s young adult life and is a great way to begin learning good money management skills that will be helpful in the future.
A good credit score can open up financial opportunities post-college, such as qualifying for an apartment, purchasing a vehicle, qualifying for a loan with a lower interest rate, etc. There are different strategies for building a credit score, such as making payments on a student loan while in school or getting a secured credit card (where your credit limit is equal to the amount of money you deposit).
If your child worked a summer job and had earned income, there may be opportunity for them to make a contribution to an IRA or Roth IRA for 2019. If they do not need the funds in the short- or mid-term, this may be a great opportunity to start retirement savings habits at a young age.
These are just a few of the things parents and students should consider before heading back to school. For a more comprehensive list, please click here to view our Planning for College checklist. As always, please outreach to your JNBA Advisory Team should you have any questions.
Wishing all students a great academic year ahead!
Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, Inc.
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