Do you have a college-bound student in your life who could benefit from practical tips and advice?
Chances are, there’s a student in your life that is starting to think about higher education (or trade schools), actively applying to college, or has just started their college journey. And chances are, those students have questions about finding a school that is the right fit for them, financing college, deciding on a major, and getting a job after graduation. While every student’s journey is unique to them, there are commonalities and resources available that students and their parents should keep in mind when preparing for college.
Picking a School
In the United States, there are 5,760 post-secondary institutions1 running the gamut from public to private non-profit and private for-profit schools. For the college-bound student there are several considerations when finding a school that is the right fit for them.
- Size – do I want to go to a large school with large class sizes? Or is a smaller school with more intimate classes a better fit for me?
- Majors and classes - Does the school offer a degree in my major and course of study?
- Location & distance from home - Do I want to be in an urban setting? A college town? Is it important to me to be closer to home (free laundry! and easy ability to come home for long weekends) or to be more independent and go farther away from home?
- Cost - How much does it cost and how much financial aid (i.e. scholarships and work study) will the school offer me?
- Type of school – do I want to pursue an education at a 4-year university or is going to a community college first to get general education classes a better option? Am I interested in going to a trade school to get hands-on practical training for an in-demand career in a specific industry?
Once your student has identified what they want to accomplish in college, and what they want their college experience to look like, it’s much easier to key in on a specific school.
Our partners at John Hancock Investment Management have designed an invaluable tool to aid in choosing a school that is a good fit for your student – the Education Planning Center features the ability to identify, save, and prioritize which institutions may be right for your student based on desired area of study, grades, financial need, and location. The EPC also helps your student understand school requirements and their likelihood of getting an admissions offer to their preferred schools.
Selecting a Major
Lead Advisor Brian Lockett, CFP®, AEP® likes to say that you go to college to get a good first job. He encourages students to back into their chosen major by figuring out what lifestyle they want after they graduate, where they want to live, what jobs they might like that would support that lifestyle, then determine which majors could put them on that path. When deciding on a major, consider researching the return on investment of the degree (i.e. the lifetime cost of the degree measured against the lifetime earnings dependent upon that degree).
Another consideration is keying in on what your student is naturally good at – at CWM we recommend checking out Clifton's Strengths for Students from Gallup to help identify their top five unique talents and strengths.
In our increasingly AI-saturated world, one more factor should be considered: will the job your student wants to obtain upon graduation be replaced by artificial intelligence? Many entry level jobs may face a significant threat from automation. Check out our College Planning Guide for access to resources that will help determine the likelihood of job automation.
Paying for College
College can be expensive – according to the Education Data Initiative, the average cost of college (including housing, books, supplies, and daily living expenses) in the United States is $38,2702.
Most college-bound students and their families will complete the FAFSA (Free Application for Federal Student Aid) to help determine eligibility for federal aid programs, qualify for grants and work-study programs, as well as to be considered for merit scholarships at some institutions.
Families may choose to open savings accounts such as an UTMA or UGMA, or a tax-advantaged 529 college savings plan. Each of these accounts have different benefits to them, but for a deeper dive into creative uses of tax-advantaged 529 accounts check out our recorded webinar below: 10 Myths About College Savings Plans featuring Geoff Williams, 529 Specialist with John Hancock.
Tips for a Successful College Experience
Once your student has identified a course of study, applied to and been accepted by an institution of their choice, and as a family you have determined the best way to pay for college, it’s time for the real work (and fun) to begin! Amid the classes, dorm life experiences, parties, and overall figuring out how to be an adult, keep these important points in mind:
- Your college student is no longer a minor - we recommend having them fill out a Medical Power of Attorney form and a General Power of Attorney form. Samples of these forms are available online in our College Planning Resources toolkit.
- Have a budget – know how much you make after taxes each month, know how much your expenses are each month, and build a reserve in your savings (pick a threshold that you won’t go below to ensure you have a cushion).
- Beware credit card debt! - You do not need to begin to build credit, in fact having a credit card and missing a payment could harm you more than help you long term. Credit card interest rates can be as high as 24% and coupled with a late payment fee it’s very easy to get underwater quickly.
- If you can, get a part-time job – studies have shown that students who work between 15 and 20 hours per week have an average GPA of 3.13 (compared to 3.04 average GPA of students who do not work)3, however students who worked more than 20 hours per week saw an average GPA of 2.95, so finding the right balance is key.
The Next Adventure Awaits
It is an exciting time of life for college-bound students with the anticipation of new experiences, new friends, and that first taste of adult independence. With the right planning and preparation, your student’s college experience can set them up for a lifetime of successful careers and relationships.
If you’d like to speak with a CWM advisor about college savings plans, an introduction to a college guidance counselor, or access to the Education Planning Center (exclusive to CWM clients) please contact us at (425) 778-6160 or click here to schedule a conversation.
Comprehensive Wealth Management, LLC (CWM) is an SEC registered Investment Advisor and Pacific Northwest wealth management firm that partners with clients to articulate and help achieve their financial goals as prudently as possible. Our high-touch, client-focused investment planning and implementation makes us the first call for executives, business owners, and other thoughtful investors to help strengthen their financial health holistically and intentionally, managing risk while pursuing long-term gains.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Diversification and asset allocation do not ensure a profit or guarantee against loss. Past performance is no guarantee of future results. This communication is informational only and is not a solicitation for investment advice.
1IPEDS. (n.d.). https://nces.ed.gov/ipeds/search/viewtable?tableId=36525
2Hanson, Melanie. "Average Cost of College & Tuition" EducationData.org, 2025-08-29, https://educationadata.org/average-cost-of-college
3Planning, E. C. (2023, April 3). Why students should work part time during college - ECP. https://elitecollegiateplanning.com/seven-reasons-why-students-should-work-part-time-during-college/
