BOISE, Idaho — Early this year, theIdaho State Board of Education approved increases in resident undergraduate tuition for Idaho’s four-year institutions for the first time in four years.
With college costs continuing to rise across the state and country, more high school students are taking a more strategic approach to their college majors.
Cory Latham, director of 529 college savings at Fidelity Investments says the next wave of students is becoming more financially savvy when it comes to their post-college futures.
“As you look out in the landscape right now; the student debt crisis, there’s inflation and concerns about job security,” said Latham. “It’s not really surprising to see them embrace thoughtful decision-making as they narrow down their choices.”
Latham highlights a recent Fidelity Investments study that found that 70% of recent college graduates say they’d likely re-consider what they studied if they could end up making more money.
And Gen Z is listening. Instead of majoring in their passion, some students are now choosing to gain a degree for the sole reason that it will set them up financially once they enter the workforce.
Parents are also helping their student's future by having conversations about saving and preparing for the expense of college and how their degree can provide for financial independence.
“You want to start your savings journey as early as possible,” Latham said, “but if you can't start early, save what you can, when you can, and recognize that what you save now is less that you’ll have to pay later.”
Some ways you can prepare now is to save what you can and start early if possible. Latham says the better prepared you are, the better position you'll be in.
Second, consider a 529 college savings account that you can use to pay for college or student loans. These are flexible tax-advantaged savings accounts that are designed to encourage saving for future college and education expenses.
Finally, don't be afraid to reach out for help because plenty of people have been in your shoes.
