Teens and Finances

These days more and more teens are worrying about paying for college rather than getting into college. Finance expert, Farnoosh Torabi is here to help both parents and young adults deal with the economic downturn.

Audra Lowe: More and more teens are actually worrying about paying for college rather than getting into college in today's Your Money finance expert Farnoosh Torabi is here to help both parents and young adults deal with the economic downturn and also debunk some of the most common college spending myths out there. Welcome to the show. Farnoosh Torabi: Thanks for having me. Audra Lowe: Women like this. There is a lot of them out there. You spent the past two years or so talking to students specifically about their concerns when it comes to the economy and there is an interesting survey out there with some surprising results. Farnoosh Torabi: Yes, Bank of America and Seventeen magazine where I am a contributing editor did this amazing survey looking at for the first time in a long time how young adults feel about money, about the economy. It turns out they are very stressed as we would expect more -- actually teen girls more than teen boys, but overall every one is pretty much on nervous track for now. Audra Lowe: And unaware of what's going on? Farnoosh Torabi: Yes, I think parents are coming home losing their jobs, money is tight and it's reflecting on kids. Audra Lowe: And the numbers are high 85% of the teen girls stress about the economy and a lot of girls think their parents should bail them out of the tough situation no matter how old they are. Farnoosh Torabi: Yeah. Audra Lowe: But there are still a lot of misconceptions out there when it comes to college and there are a few myths that we would like for you to debunk for us. Farnoosh Torabi: Sure Audra Lowe: The first one is that students can't get anymore financial aid once they are in college. Farnoosh Torabi: That's totally false. In fact, if your financial situation has worsened which for a lot of families that is the case, they've lost their job or their hours have been cut back. So what you want to do is go to your financial aid office and ask for a professional judgment review. That essentially opens up your financial records once more and they revaluate it considering your current situation and in some cases you can get extra money. Audra Lowe: It's interesting because things can change in those two years. Farnoosh Torabi: Absolutely. Audra Lowe: Also, that's it's impossible to save when you in college, because you're usually spending money. Farnoosh Torabi: Right Audra Lowe: So a lot don't think you can save. Farnoosh Torabi: Everything from electronics to books to clothing, food, I find there are a lot tips out there that students just don't embrace. For example, books you can rent books instead of buying books. Your student ID can get you discounts on food often on campus and I love refurbished electronics. Let's face it all college students want the iPhone, the MacBook everything, Apple related. Well, with your student ID and with going for a refurbished version of these products you can save 20%-30%. Audra Lowe: And it works, it's okay. Farnoosh Torabi: Yes. No one will know. Audra Lowe: It's refurbished, but it works. It is also a myth that you have listed here this is the friends will pay me back sounds little familiar. Farnoosh Torabi: And it's a good lesson to learn early on, because as we know we get older as adults, which is not something that goes away, friends ask us for money. So learn this now that most times the money never gets returned. So if you are not okay with letting go of that money, don't do it. Audra Lowe: Don't do it at all. You are not going to get that money back. Farnoosh Torabi: It's going to ruin the relationship, more importantly. Audra Lowe: Right, that's true. Also, college will only last four years. I mean, I have some friends there still in college. Farnoosh Torabi: No, never. There are the super seniors, there are super seniors, super, super seniors. Audra Lowe: Yes. Farnoosh Torabi: On average students graduate in five years and so it's really important to know this ahead of time, so that as you are preparing financially for college, parents and students, that you're aware of the fact that you may you have an extra $30,000 you will have to come up with, because that extra year will be that much money. Audra Lowe: And that will be the year that the tuition jumps up too as well. Last but not least, students don't have the time or the resources to budget properly with every thing else they have got going on classes. A myth? Farnoosh Torabi: It's a big myth and you know right now with some many online resources to help you budget, to help you really get a sense of how much money is coming in, is going out, there are online software's, your bank might be able to you know send you text alerts, emails to really keep you aware and up to speed about your financial. Audra Lowe: There are a lot of resources out there these days too. Farnoosh Torabi: Yes. Audra Lowe: Thank you so much. It was please to meet you. Farnoosh Torabi: You're welcome. Audra Lowe: And for a complete list of resources tips and tools to help students and their parents become more financially responsible, you can go at our website bettertv.com and then on the link. 3