Should Students Use Financial Planners?

One of the more persistent public conceptions of financial planners is that they are primarily for the rich, famous, and those with a lot of money. Even some upper middle class individuals may make use of financial planning services.

But, when considering whether or not students should have financial planners, many people would likely insist that not only would the practice be unnecessary, but it also may be wasteful. However, there may be a compelling case for students interested in hiring their very own financial planners.

When considering the traditional college student, who takes out a series of loans to pay for their university educations, the idea of hiring a financial planner may seem superfluous. But, considering the fact that many students actually work and struggle to manage their income and debt effectively, hiring a financial planner could be a good way to begin to learn proper money management skills, and save for the future. Though most college students probably do not earn very much expendable income from their part time jobs, learning to budget even a small amount of money could prove invaluable after graduation when entering the real world.

Much of whether or not the student can afford to hire a financial planner depends on how they will be charged and whether or not the financial planner has a minimum requirement for assets under management. The best financial planning services for students would likely charge a percentage of any gains the portfolio accrues, and which charges minimum startup and maintenance fees. Though they may be few and far between, there are a number of low minimum and no minimum financial planning options available in the market.

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Students entering today’s job market are saddled with more debt than ever and face an increasingly difficult time finding work. Learning to follow a well prepared financial plan, or even using the services of a qualified financial planner while in college, can help students better prepare to manage their finances once they graduate, and give them a better shot at financial success throughout their lives.