Paying for college extends beyond the simple calculation of tuition and fees, encompassing a range of hidden expenses that many prospective students and their families often overlook. Jack Wang offers a nuanced perspective on this topic by highlighting the often-ignored costs such as taxes, interest, and opportunity costs, which can significantly inflate the overall financial burden of obtaining a college degree.

(00:23:56) "The question is not about right or wrong. The question is, do you want to do better and do you want to pay for college in a way that can help support the rest of your finances?" - Jack Wang

Drawing from his analysis, Jack advocates for strategic financial planning to navigate these hidden costs, emphasizing tax-aware strategies and the importance of considering long-term financial implications.

• Identify the total amount of gross income you need to cover college tuition
• Explore income tax saving strategies for your tax bracket
• Consider owning a business or being self-employed for tax advantages
• Understand opportunity cost in spending decisions
• Minimize taxes, interest costs, and opportunity costs when paying for college
• Use debt strategically for major purchases

(00:02:57) Hidden Costs in College Financing

(00:06:34) Tax Savings for College Financial Planning

(00:13:25) Compound Interest Impact on Financial Decisions

(00:16:53) Optimizing Financial Decisions for College Funding

(00:21:35) Opportunity Cost in Strategic Debt Usage

Getting Creative About How to Afford College for Your Student

With insights into innovative approaches like Merrimack College's fixed-cost model for humanities majors, Jack Wang encourages a more intentional and strategic management of college expenses to enhance financial well-being both during and after the college years.

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.

With the right strategies and early preparation, you can maximize your child’s chances of getting into your (or their) dream school and securing scholarships. Students should begin preparing for standardized tests like the SAT or ACT well in advance, paying special attention to their grades even as a Freshman in High School. This will allow you and your student to have time to review content, practice test-taking strategies, get tutoring, and improve scores.

Strategic Test Prep: Leveraging Individual Strengths

(00:01:02) Empowering Students for Bright Academic Futures Through Test Prep

(00:09:16) Strategic Approach to GPA and AP Courses

(00:13:07) Testing Policies Impacting College Admissions Success

(00:15:20) College Fit Importance in Avoiding Overmatching

(00:21:33) Strategic Test Prep: Leveraging Individual Strengths

(00:25:46) Mock Test Analysis for College Admissions Success

(00:28:30) Financial Opportunities Based on Academic Performance

Test-Blind, Test-Mandatory, Test-Optional: Understanding College Policies

When applying to colleges, research their admissions policies and consider your own strengths and weaknesses to determine the best approach for your application.

• Test-blind colleges do not consider standardized test scores as part of their admissions process, focusing instead on other aspects of your application like GPA, extracurricular activities, and essays.

• Test-mandatory colleges require students to submit standardized test scores as part of their application, and these scores play a significant role in the admissions decision.

• Test-optional colleges give students the choice of whether or not to submit test scores, allowing them to showcase their strengths in other areas if they believe their scores do not accurately reflect their abilities.

Empowering Students for Bright Academic Futures Through Test Prep

- Finding the right college fit based on major, academic stats, and overall student success helps prevent overmatching and financial burdens in the future.

- Choosing between the SAT and ACT based on individual strengths, taking mock tests early, and excelling in one test rather than both are key strategies for standardized test preparation.

- Strategic planning when taking college admissions tests, identifying strengths and weaknesses early on, and prioritizing the PSAT for National Merit Scholarship consideration are important factors in academic success.

- Using the Merit Aid Grids website can help students understand college funding opportunities based on GPA and test scores, providing valuable information on financial assistance for college.

"Our mental mindset of what a 3.5 meant in 1994 is unrelated to a 3.5 in 2024. It just really is so different." - Brian Eufinger

Follow Brian Eufinger:

His Test Prep Business: https://edisonprep.com/start/

His summer passion project: https://meritaidgrids.com/

LinkedIn: https://www.linkedin.com/in/eufinger/

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.

Do your college funding goals entail covering private tuition or a portion of in-state tuition? The answer could be the key to your “best” saving strategy.

"You can save using almost anything. There is the easy option and then there is the right or best option for your family." - Jack Wang (00:19:53)

There are various opportunities for tax-sheltered college savings account like 529 plans and IRAs, plus unconventional options like real estate investments. For families aiming to balance the financial demands of higher education with other long-term financial goals, college savings can be a daunting task. In this episode, you’ll learn about the types of savings accounts & funds, what to look for in a plan for college savings, and some options other families have found useful.

Intentional Financial Planning for College Savings and Long-Term Goals

• Tailoring college savings strategies to specific financial goals is crucial, such as covering private college costs or in-state tuition.

• College savings should be versatile to be used for other purposes like retirement without facing unnecessary taxes or penalties.

• Consider tax implications when saving for college, as different accounts have varying penalties and restrictions on fund usage.

• Balancing funding college savings with retirement savings is a challenge for many families, highlighting the need for strategic financial planning.

Jack Wang shares insight on the potential tax benefits of saving in a child's name and warns against the pitfalls of overly rigid savings strategies, drawing from experiences where families have found themselves constrained by overfunded accounts. He advocates for intentional and flexible planning to ensure that families can meet their educational financial goals without sacrificing their future financial security.

Maximizing Savings: Innovative Approaches to College Funding

(00:02:10) Tailoring College Savings to Specific Financial Goals

(00:04:28) Multi-purpose College Savings Strategies

(00:07:47) Savings Strategy: Minimizing Taxes for College

(00:12:50) Balancing College and Retirement Savings Strategically

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*Be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.