KIMT News 3 – Student debt is affecting many people, and the scary news is it could affect the economy in the future as well.
The thought is that students who are graduating will miss out on crucial investments that would help to establish them economically.
A financial advisor for Edward Jones Financial says that this could be a real drag in the economy.
“Time value of money is critical for 20-year-olds,” Sara Carlsson says. “If you can’t start buying stocks, bonds and other profits that help the economy at this age, you lose the benefit of the time value. When you save early, that money grows quicker as you age, because you have saved for so many years.”
Carlsson also says that not only should you have a talk with your kids about what college they should be choosing, but also have a financial conversation about the school. She says this will give you the ability to decide if the school is worth it, or if there is a cheaper way to achieve the same results.