128. Opportunity Cost of Student Loans, How Much Are Student Loans Really Costing You?

Opening Bible verse: Ephesians 5:15-17 Opportunity cost is what has been given up because a different decision was made. In today's episode we talk about the true cost of student loans.  If your child graduates with student loan debt, chances are they won't also be able to afford to save for retirement.  I know retirement might seem really far off for your child but the financial decisions they make now, could affect them for the rest of their lives.  Investing early and often is crucial to retiring with dignity.   Check out this retirement calculator that you can input different numbers to see how much can be saved when starting early in their careers.  I used an average rate of return of 7% for the numbers quoted in this episode.  I also kept the numbers really simple and did not take into consideration all the potential life changes.  Simply, a monthly debt of $278 or a monthly investment of $278. You can run similar scenarios for any type of credit card debt as well.  Here is the website I used to demonstrate the power of compound interest working FOR you: https://www.nerdwallet.com/calculator/compound-interest-calculator While I don't talk about credit card debt (your teen will be offered a free gift to sign up for credit cards in college) in this episode, I wanted to share another calculator with you to play around with numbers to demonstrate to your teen the power of compound interest working AGAINST them https://www.bankrate.com/finance/credit-cards/minimum-payment-calculator/ If you would like to work with me 1:1 on in-person decluttering, virtual decluttering, mindset, budgeting, or meal planning, please email me (Gina Morton) at: [email protected]