How to spend your money wisely on college: "A family talk"

<pre><pre>How to spend your money wisely on college: "A family talk"

Average students who graduated in 2018 owe more than $ 29,000 in loans, Repaying these loans is just one of the financial challenges that many adults face.

CBS News business analyst Jill Schlesinger and the author of "The Stupid Things Smart People Do With Their Money" gave some tips on Tuesday how to spend money wisely on "CBS This Morning".

Consider the whole family when making college decisions

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The student shouldn't be the only priority when deciding where to go, said Schlesinger.

"So often we prioritize students, right? They say," Oh, wherever the child can go is great. But this is a family talk that needs to take place, "she said.

"We don't want parents to postpone retirement," said Schlesinger. "What we want to do is say: & # 39; Here are the options for the family. You can go closer to home or to a place where you can get a scholarship, but as a family this is what we do can do. & # 39; "

The conversation should be had around the student's junior high school year, she said.

But Schlesinger also warned that complete transparency about finances is not necessary.

"You don't want your children to feel your own fear of money, but we want to have open conversations that are direct," she said, suggesting to the parents what they can do and what their child may need to do.

"Remember – if you don't talk to your children about it, you run the risk of making a decision that will endanger them. Who cares about you when you get older and you can't take care of it? By yourself?" Said Schlesinger.

Protect your identity

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Two secrecy tips for everyone, according to Schlesinger, are: Change your passwords and set up two-factor authentication.

However, she said that more attention should be paid to older adults and children.

"You need to speak to the most vulnerable, security experts think are very young and very old," she said. "This means that the grandparents and the children don't have to share too much about the social."

Protecting your identity can save you money and time, said Schlesinger.

Stick to the "easiest solution" when taking out insurance

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Schlesinger talked about life insurance and said "not everyone" needed it.

"What you need to know is that if something happens in your life that ends your life prematurely, it will have a financial impact on someone else? Your children, your spouse, your parents?" She said. "You have to go through the numbers. There are a lot of computers out there and you want to stick to the simplest solution when it comes to insurance."

Schlesinger said you should take out life insurance. "You buy it for the period you need cover, and it disappears after that when your load is released," she said.

Schlesinger's book "The Stupid Things Smart People Do With Their Money: Thirteen Ways To Fix Your Financial Wrong" will be released in paperback on Tuesday.