Financial planning for college grads

Good Morning CT at Nine

(WTNH)-Yale graduate and North Haven native John Caserta started a financial planning practice in the New Haven area. Caserta & De Jongh, LLC provides financial literacy to the general public, especially young professionals. The firm aims to educate young individuals as they transition from school to their first job so as to prepare them to make important financial decisions. Back-to-School Tips

  • College

    • Organize student loans with the name of the lender, amount, and interest rate.
    • Use the National Student Loan Data System (nslds.ed.gov) to help organize loans.
    • Talk to your children about how the loans work, when repayment begins, and how the interest accumulates.
    • Consider opening a Roth IRA with earnings from a summer job. It can help teach them about retirement planning, tax-free income in retirement and also provide access to contributions in an emergency.
    • Review deadlines for making payments and make sure they line up with delivery of funds from 529 plans.
    • For students who graduate without a loan, I advise them to pretend they do have loans and pay themselves back. I recently worked with a local student who graduated without any loans and he said his parents paid for grad school and did not want to be reimbursed. Since the total cost of the program would have been $80,000 that would have been the amount he would have had to borrow in the absence of his parents. Well, we calculated an estimated monthly payment $80,000 loan over 25 years and his goal will be to invest (or “pay back”) about $550/month into an account for himself.
  • Any Age

    • Review tuition installment plans and be aware of any additional charges for using the plans (i.e. service fees or interest).
    • Great time to take an inventory of the entire family finances and create a budget that identifies “school-related” costs.

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