financial planning Archives

4 Financial Tips for College Students

Published September 8, 2021

By Joseph R. Santos

As the school year begins for many college students in Los Angeles, new data from Bank of America reveals that 63 percent of college students had their summer or post-graduate plans change due to the pandemic — and for 50 percent of college students, that included moving home or near home. While some first-time college students last year started their college experiences at home, many will get to enjoy their first on-campus experiences this year and are hopeful for the year ahead. With this newfound independence also comes financial responsibility.

According to the recent study, college students’ biggest financial fears are debt and an inability to pay bills. While financial independence requires time and practice, there are tips parents can share with their college-age children to help them find stable financial footing. Here are four ways college students can begin tackling the test of money management and chart a path toward a healthy financial future:

Make a financial checklist. One way to get on track is by making a financial checklist. It can include creating a budget and spending strategy, such as opening a savings account or checking in with a financial advisor to discuss planning a solid financial future. Taking the time now to develop strong budgeting habits can become lifelong financial skills.

Establish a budget. Only 45 percent of college students practice budgeting, despite the 57 percent who consider themselves financially independent, according to the Bank of America survey. Budgeting is a critically important skill to help plan, save and address financial anxiety – not to mention the first step to achieving financial stability. Keep it simple to start: track your spending and separate into wants and needs categories to identify places to save.

Start thinking about credit. Establishing good credit takes time, so it’s best to begin building credit during young adulthood. Our survey found only 15 percent of college students review their credit report and/or FICO score. Being aware and practicing good credit card habits can help pave the way for major purchases and life event moments, since credit impacts future living arrangements, the ability to purchase a car and even employment opportunities.

Save automatically. Especially for those with summer jobs or internships, use the summer to boost your savings. The Bank of America survey found 61 percent of students already practice saving, but only 20 percent do so automatically. Automatic savings tools can help you keep consistent and even save while you spend.

We hope these valuable tips will help guide Los Angeles parents and their students as they embark on this new phase of independence and start their higher education at esteemed local colleges in the region. Bank of America’s website and its Better Money Habits online resource provide a number of tools and tips to help students plan and achieve their financial goals. As students attend school, having healthy financial habits can make all the difference in their money management path and preparation for the future.

Joseph R. Santos is a Los Angeles consumer bank executive for Bank of America.

Joseph R. Santos is an executive with Bank of America.

Four Support Strategies For Special-Needs Families

Published April 28, 2014

Children with special needs aren’t the only ones who need support. Using these tips to help keep the whole family healthy benefits the special-needs child as well.

by Brian Roper, Ph.D.

For human beings, childhood lasts a very long time. Born with just the basics needed for survival, each of us has much to learn toward becoming a contributing member of society. The family plays an incredibly important role in a child’s development, and this holds true regardless of the child’s developmental status. The family is not just the people you live with, but the gateway to how a person views and deals with the world at large.

As the rates of autism and other neurodevelopmental disorders continue to rise, it is not just individual children who are affected, but entire families. While this seems obvious, it often gets overlooked. This may be because most of the intervention focuses on the child with autism. The array of services for a child with a developmental delay or diagnosed disorder can be staggering. There is applied behavior analysis, speech and language therapy, occupational therapy, Floortime services, music therapy, appointments with the developmental pediatrician, neurologist, gastroenterologist and more. But since so much of the wellbeing of a child with developmental issues is tied to the wellbeing of the family as a whole, it is vital that the health of the entire family be addressed.

Here are support and service tips for families of children with special needs:

1. Get a financial planner! It is expensive to raise a child. It is really expensive to raise a child with special needs. A recent study out of Harvard, Boston Children’s Hospital, Massachusetts General Hospital and the University of Michigan Health System found that healthcare costs for families with children with autism were on average $3,020 higher than those for families with neurotypical children. Further, non-healthcare costs averaged $14,061 more per year, and yearly educational costs were $8,610 higher. With everything else a family with a child with special needs has to accomplish in a day, someone with expertise in mapping out a family’s financial health is essential. As a clinician working with children with special needs, I devise therapeutic goals for each of my patients with an eye toward what that child might need in a year, five years and 10 years. That same eye to the future is important to apply to the family. As a child with autism or any other special needs ages and moves toward adulthood, considering their financial future is vital. It can be very uncomfortable, but, a good, sensitive advisor can take a family through the process and give parents a sense of security that their child’s needs can be met down the line.

2. Make time for parent support groups. There is strength in numbers. There is also support. Each family’s experience is different, but having a forum with other parents and caregivers who share the common thread of caring for an individual with autism or other special needs can lead to a strong network of support. Informal support gatherings or more formal programs led by a qualified professional can facilitate stress reduction and education. Vista’s parent support group http://www.vistadelmar.org/parent-support/ focuses on stress reduction, using proven clinical intervention techniques. Families coming together can be a potent way to avoid isolation and share information.

3. Don’t forget siblings and their needs. The brothers and sisters of individuals with autism and other developmental disorders face a unique set of issues that most of their peers will never experience. Their sister or brother might not speak. For those who can, they might be internalized and not seek the kind of relationship that the typically developing sibling expects.

As young children, the siblings of children with ASD and related disorders might not understand why their sister or brother behaves the way they do. The relationship can be even more perplexing when it is their older sibling who has special needs. As the sibling of a child with autism gets older, they might wonder why they are able to do things that their older brother cannot and why they have so many “teachers” to help them. Some individuals with autism can manifest aggressive behaviors. When these behaviors occur, typically developing siblings can be on the receiving end of one of these outbursts. Even though such outbursts might not be deliberately targeted at them (the sibling might just have been in the wrong place at the wrong time), it sure can feel like it.

Autism Society of American (www.autism-society.org) recommends that as parents of children with ASD or other developmental issues come to know their child and his or her condition better, they educate the siblings as well. It is possible for siblings on both sides of the developmental road to forge a bond that is uniquely their own. It might be beneficial for siblings to periodically attend therapeutic services to learn how to better understand or communicate with their brother or sister with ASD. Therapy works when everyone is on the same page. The more affected and unaffected siblings can successfully interact, the stronger the family becomes as a functional unit.

As siblings enter adolescence, support groups can also be a powerful resource for dealing with the stress of growing up. To better serve our own families, Vista is introducing a therapy group that provides counseling and coping strategies for siblings of children with ASD and related disorders. Other organizations might offer similar programs to help siblings process emotions and develop solid coping strategies.

4. Get involved. When a family is busy with trying to simply get through the day, it is easy to get isolated – not just from friends and family, but from a greater community that is working to better understand autism and other neurodevelopmental disorders. Organizations such as Autism Speaks and Autism Society of Los Angeles work to bring awareness and action to the autism community. Being a part these organizations can not only galvanize a family, but also provide a wider web of support and a chance to be part of a larger dialogue.

Participation does not have to be solely with the large organizations championing the cause of individuals with special needs. So much of autism spectrum disorder remains a mystery. In my career, I have encouraged families to learn about research and consider volunteering if they choose. Volunteering in research does not have to be a big affair. It can be as simple as being a subject in a doctoral student’s dissertation study or answering the call of a nervous young assistant professor with great ideas who is marching toward tenure. I am thankful every day for the families who participated in my own dissertation study, so that I might enjoy the career I have today

The nuclear family is a fantastically important factor in the development of a child. The child with ASD or other special needs is no different. When the family is supported, the child is as well.

Brian Roper, Ph.D., M.S. CCC-SLP, is Director of Autism Services at Vista del Mar Child and Family Services in Los Angeles, which provides comprehensive, family-centered social, educational and behavioral health services for children and families.

Special Needs: Financial Planning Today Means Care For Tomorrow

Published April 28, 2014

Coping with a special-needs child’s diagnosis can take its toll, but don’t delay planning for the future.

by Melanie Gaball

Financial planning is important for parents, but for those who have a child with special needs the complexities of funding a lifetime of care can be overwhelming and emotional. While many parents are still dealing with the acceptance of their child’s diagnosis, developing a financial road map for their family’s life may not be something they’re ready to face.

When a child first receives a special-needs diagnosis, parents want to believe things will get better. Whether they hope for a cure or think their child will grow out of it, they often postpone long-term financial planning. However, in most cases, children with special needs grow up to be adults with special needs and parents should begin the financial preparation as early as possible.

1) Parents must consider what will happen to their child when they are gone.

“Typical parents never want to outlive their child, but a parent with a special-needs child wants to outlive their child by one day, because they know that no one will take as good of care of their child as they will,” says Todd B. Daniel, Special Care Planner for Mass Mutual.

Parents should begin planning for their child’s financial future as soon as possible. With improvements in health care, people with special needs can live long, full lives.

“The life expectancy of a child with down syndrome used to be 19, now it’s in the 50s,” says Scott Macdonald, Senior Vice President and Certified Special Needs Advisor for Merrill Lynch. “It is important to start planning early for the different milestones ahead and how they will be funded.”

2) Set up a special-needs trust to coordinate with government funding.

A person who is collecting disability benefits cannot have more than $2,000 in personal assets. In order for parents and relatives to put money away for a child’s future, and still allow that child to keep receiving government aid, they should work with an attorney to set up a special-needs trust, says Daniel.

“A special-needs attorney is crucial. The titling of assets must be done correctly and put into the special- needs trust, so that it doesn’t go to the government,” Macdonald says.

Parents can fund the trust in a number of ways. They can get money from extended family, do a monthly deposit or use life insurance.

“Using life insurance is the most inexpensive way to do it,” says Daniel. “Parents can use their assets for the things they need now, and buy the insurance to fund the trust, so when and if they pass then the million dollar life insurance policy goes into the account and now their child has money to spend for the rest of their life.”

3) Establish trustees and caregivers.

“A lot of times parents will say that one of the child’s siblings will be the caregiver if they pass, but they really need to make sure that the sibling is OK with that. It might not be fair to assume that the 17-year-old sister is going to spend the rest of her life taking care of her sibling, unless she wants to,” Daniel says.

Sometimes the caregiver and the trustee can be the same person, but it may be better to assign the roles to different family members, Daniel says.

Some parents may not want a family member managing the special-needs trust. If not, they can set up a trusteeship where a professional, such as a California Fiduciary, runs the trust, Macdonald says.

Creating a Letter of Intent is also an important step in the planning process. A Letter of Intent allows parents to disclose the needs of their child to future caregivers, says Daniel.

“A Letter of Intent is one of the best things a parent can start doing,” says Macdonald. “It is a non-binding, non-legal road map for their child (describing) where they will go when they are gone, what they like to do, what they like to eat, and even what the parents hopes and dreams are for their child.”

A great way to do the Letter of Intent is to make a video of and about your child, says Macdonald.

4) Use all available resources.

For those who cannot afford a lawyer and want to seek legal help, Daniel suggests using Bet Tzedek, a non-profit organization that provides free legal advice and representation to low-income residents of Los Angeles.

Macdonald suggests working with a team of experts including a benefits counselor, specialized attorneys, a specialized financial planner, a California Fiduciary and caregivers.

“Parents should be able to focus on being loving and caring to their children and they shouldn’t have to be budgeting and monitoring finances all of the time,” Macdonald says. “They should also use support groups where they can talk to others about their experiences. They need to know they are not alone.”

Children with special needs aren’t the only ones who need support. Using these tips to help keep the whole family healthy benefits the special-needs child as well.

Coping with a special-needs child’s diagnosis can take its toll, but don’t delay planning for the future.

L.A. Parent