Broker Check

7 College Planning Steps for Teens

| August 03, 2023

August Client Letter: 7 College Planning Steps for Teens

Getting prepared for college can be both exciting and overwhelming for a high school senior. What might your goal-oriented peers do that will help them succeed as they set out on a new path?

The key to successful college preparation is to establish an efficient and structured plan.

Having a clear roadmap to guide your planning can make the process smoother and ease any worries that you might have as you move on to the next phase of your life.

Let’s look at some important steps that can ease the stress and uncertainty that often accompanies the transition to college life.

7 boxes to check

According to Sallie Mae’s Higher Ambitions: How America Plans for Post-Secondary Education 2020, 94% of high school students are likely to continue their education after high school.

Although not everyone will attend college or obtain a two- or four-year degree, developing a plan and establishing goals can increase the likelihood of making the right choices. If you can check off these seven boxes, you will be well on your way.

1. Research the schools that capture your attention

Just under half of high school seniors have researched potential colleges. So, what are you looking for?

Is it a state university or a private college? Do you prefer a large or small school? Do you want to stay near home, or would you prefer an out-of-state college? Is there a specific career or major area of study that will influence your choice?

The top three factors students reported when researching and choosing a college are:

  • Does the school offer a program that matches their desired career or major?
  • Where is the school located?
  • What type of financial aid is offered?

2. Rising costs are real

It’s no secret that the cost of college has soared. According to, on average, tuition and fees rose 5.1% a year at public four-year colleges and 3.9% a year at private four-year colleges between 2000 and 2020. But there is some good news, as the pace has slowed.

If you need some extra cash to attend university, taking out a student loan could be a viable option. There’s no shame in borrowing for your education.

However, it’s important to remember that loans must be repaid. Don’t overextend yourself. You don’t want to end up with a burdensome repayment schedule that lasts long after graduation.

It is also important to consider scholarships and grants. According to Online College Plan, scholarships are often overlooked as a valuable resource for funding. It’s a missed opportunity that may leave free money on the table.

There are three different types of scholarships offered:

  • Need-Based Scholarships, based solely on financial need
  • Merit-Based Scholarships, based solely on academic excellence or extracurricular achievements
  • Special Scholarships, based on a variety of factors and are usually offered to students of a specific race, gender, chosen field, and more

Consider these resources:

While we want to get you pointed in the right direction, please supplement our ideas with your research.

In addition, let the treasure hunt for local money begin at your area’s Department of Education or youth and family government agencies. Even if they don’t have grants, they can get you pointed in the right direction.

3. FASFA is key

About 60% of high school seniors have filed the Free Application for Federal Student Aid (FAFSA) for their upcoming freshman year by April. The FAFSA costs nothing to complete, but it can unlock thousands of dollars of financial aid for college.

Some of the monies are distributed on a first-come, first-served basis, so don’t put it off. The clock is ticking.

The opening date for the FAFSA application is usually October 1. However, due to new changes in the application, the opening date for this year only has been moved to December 2023.

Consider completing the form even if you have no intention of taking out student loans. Otherwise, you could inadvertently forfeit scholarships, grants, and work-study opportunities.

4. Test-taking wanes in influence

The SAT or ACT is becoming less of a requirement nationally, and many colleges and universities are now test-optional.

If you’re considering the SAT or ACT, there are test prep classes and practice exams available online.

5. Essays and letters of recommendation increase your odds

There is no shortage of resources for writing college essays, as a quick Google search will reveal. Here’s one to consider from U.S. News and World ReportHow to Write a College Essay.

The most important thing to do is to get started.

In addition, ask for and collect letters of recommendation from teachers (in and out of the classroom), guidance counselors, and even your principal that highlight your strengths and contributions.

Some teachers write so many letters that they may unintentionally seem generic. Therefore, you may consider providing them a “tip sheet” that highlights your best work and accomplishments.

6. Take a trip

That’s right, visit the school or schools you would like to attend. No two campuses are alike. The admissions office at your school of interest can help you plan your visit.

An on-campus tour allows you to explore the school, the dorms, the library, the classrooms, the dining hall, the student union, recreational facilities, campus hangouts, off-campus life, and much more.

During your visit, you may conclude that this could be your home away from home for the next four years—or you may decide that what you thought would be a favorite just doesn’t fit.

7. Your guidance counselor is there for you

Applying to colleges can seem overwhelming, but you can seek assistance from your high school guidance counselor, who can offer valuable advice that simplifies the process.

Did you know that school counselors can nominate students for scholarships? It’s a great idea to build a relationship with your counselor early on, as it could potentially lead to financial assistance.

How do you climb a mountain? Put one foot in front of the other.

If you’re heading to college next year, or even in the next couple of years, breaking up your prep work into smaller tasks can help reduce stress and give you a sense of achievement. Start your prep work today, and you will be amazed by what you’ll learn and the challenges you’ll overcome.

Is the stock market up 7% or 37% this year?

Well, it depends. According to one major index, the market is up a respectable 7%. That’s not bad following last year’s dismal performance, but contrast that with another well-known index, and we might conclude that the stock market is up nearly 20%.

Sounds great, right? Well, it is, unless we compare it to a third index, which has soared 37% since the start of the year.

That said, let’s name some names. The Dow Jones Industrial Average is up 7%, the S&P 500 is up almost 20%, and the tech-heavy NASDAQ Composite is up 37%.

Key Index Returns




Dow Jones Industrial Average



Nasdaq Composite



S&P 500 Index



Russell 2000 Index



MSCI World ex-U.S.A*



MSCI Emerging Markets*



Bloomberg Barclays U.S. Aggregate Bond TR USD



Source: Wall Street Journal,, MarketWatch, Bloomberg
MTD returns: May 31, 2023–July 31, 2023 YTD returns: December 30, 2022–July 31, 2023

That’s a huge disparity. Which one is correct? They all are, but performance is based on how the indexes are constructed.

Let’s start with the Dow. The Dow Jones Industrial Average is the oldest and best-known index. It debuted in 1896. Today, it is made up of 30 large companies.

In order to get today’s value, you simply total the 30 stock prices and divide by what’s called the Dow Divisor.

Why not divide by 30? The purpose of the index divisor is to maintain the continuity of the index amid stock splits, mergers, spinoffs, and more, which have complicated the arithmetic.

As of a month ago, the divisor was 0.15172752595384.

From a practical standpoint, you can quickly see how a high-priced stock, which might rise or fall by 10%, will have a larger impact on the Dow than a lower-priced stock, which rises or falls by 10%.

Additionally, the index includes blue-chip companies that tend to be slower-growing but more established. The Dow typically doesn’t decline as much in a down market, as we saw last year. It may not rise as much in a bull market.

But 2023’s discrepancy between the major indexes is unusually large.

That leads us to the S&P 500 Index, which is comprised of about 500 firms and covers about 80% of the market. Market professionals commonly use the S&P 500, rather than the Dow, as a benchmark and when discussing overall stock market performance.

Unlike the Dow, the S&P 500 is a market-capitalization-weighted index, which means that the larger companies, determined by their respective market capitalization (the number of shares outstanding x share price), have a greater impact on the index.

For example, the top seven stocks account for about one-quarter of the index.

This year’s impressive performance can be attributed to the significant contribution of super-sized tech giants, including Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA), which have performed particularly well.

This dovetails into the NASDAQ Composite, which is heavily skewed toward technology stocks. Like the S&P 500, it is also a market-capitalization-weighted index, and the big tech names have driven this year’s stellar performance.

There are about 3,500 securities on the NASDAQ, but just two, Apple and Microsoft, account for a whopping 25% of the NASDAQ Composite. Technology accounts for 55% of the index.

The importance to you the investor

Simply put, the Dow isn’t as exposed to technology as the S&P 500 and NASDAQ. While we’ve experienced quite a run-up in tech this year, since June, the rally has broadened, which is healthy.

As we move forward, much will depend on interest rates and economic growth, though let’s not discount that unexpected events could influence shares, too.

The recent moderation in the rate of inflation has taken some pressure off the Federal Reserve.

Economic activity is also an important component, as most large companies are dependent on consumer or business spending for profit growth.

Longer term, we advise a diversified approach. Loading up on one sector may bring impressive short-term gains. But as we saw last year, it can also exacerbate losses. In 2022, the NASDAQ shed 33%, while the Dow lost just under 10% (MarketWatch data).

The decision on Tuesday to down grade the US Government by Fitch has sparked a selloff in stocks and bonds on Wednesday. The S&P 500 fell1.4%, the Nasdaq Composite feel 2.2% and the Dow Industrials fell 1%. The trend continues into Thursday with all three indexes starting in the red. This is yet another demonstration of big of an impact news has on the markets.

Sadly this downgrade will likely have absolutely zero impact on the dreadful financial decisions our government continues to make going back over a decade.

According to today’s Wall Street Journal…

Fitch’s downgrade of its U.S. government debt rating Tuesday only fueled more of the partisan bickering that the firm said was raising concerns about America’s ability to tackle its swelling budget deficits. And as Congress prepares to hash out spending for next fiscal year, the two parties aren’t considering the policies that could meaningfully address the problem: raising taxes or cutting spending on major programs such as Medicare or Social Security.

“There’s no imminent signs of Congress having the political will to address our entitlement programs or the revenue that funds them and the rest of the government,” said Shai Akabas, executive director of economic policy at the Bipartisan Policy Center. “It’s a sign of worse things to come if we don’t get our fiscal house in order.”

In its report this week, Fitch pointed to projections for rising U.S. deficits as a sign of the country’s troubled fiscal outlook. After dropping sharply last year, the gap between spending and revenue has grown by 170% in the first nine months of this fiscal year, according to Treasury data through June. 

Factors driving the deficits’ growth include higher net interest costs, a product of the Federal Reserve’s interest-rate increases aimed at fighting inflation. The U.S. has spent $131 billion more on interest payments so far this fiscal year, a 25% increase from the prior year. Tax revenue has also dropped by 11% after surging last year.

Social Security, Medicare and Medicaid—which together account for roughly two-thirds of all federal spending—will also continue to get more expensive over time as the population ages. CBO expects spending on Social Security to grow from 5.1% of GDP in 2023 to 6.0% in 2033. Spending on Medicare, Medicaid and other mandatory health programs will rise from 5.8% of GDP to 6.6% over the same period, per CBO. 

While some lawmakers have floated ways to overhaul Social Security and Medicare, the topic largely remains a third rail for both Republicans and Democrats.

During this year’s debate over raising the debt limit, for example, both parties shied from considering cuts to Social Security or Medicare. The programs, which benefit elderly and disabled Americans, are hugely popular across the political spectrum. A lower credit rating isn’t likely to change that fundamental political calculation. 

Congress will have to act eventually, though lawmakers tend to wait until moments—not years—before a potential disaster to address it. Social Security’s trust fund will run out in 2034, meaning the government won’t be able to pay the full amount of promised benefits, the government estimates. And Medicare’s hospital-insurance trust fund will be able to cover all benefits until 2031.

Lawmakers will be forced to act on taxes far sooner, in 2025, when many of the most popular of the Trump-era tax cuts are set to expire. Fitch expects Congress will simply extend the tax cuts, reducing revenue and raising deficits. 

These issues have really raised awareness of how incredibly important it is to have a tax plan. There are several ways you can begin preparing now for the tax increases that will go into effect once the current tax cuts sunset on December 31, 2025. If you have questions or would like to evaluate what strategies may work best for your situation, please contact us to schedule a time to review your options.

I trust you have found this review to be informative. If you know of anyone that might benefit from this newsletter please feel free to forward it to them.

As always, it’s a privilege and a humbling experience to know that you have chosen us as your financial advisor. Thank you for the trust you have placed in us.

Kind Regards,

Niles P. Geary, II, MBA, CRPC, AIF™ 

Co-Founder & CEO 

Niles P. Geary, II is Registered Representative offering Securities and Advisory Services through UNITED PLANNERS FINANCIAL SERVICES, A Limited Partnership Member: FINRA, SIPC Voyage Partners Financial Strategies, LLC and United Planners are not affiliated. 

This page contains links to third-party company websites. By selecting a link, you will be leaving our website and launching a new browser window. These links are provided for informational purposes only and should not be viewed as an endorsement, sponsorship, solicitation or other affiliation with respect to any third parties. We are not making any recommendations or providing any advice on securities in particular or investments in general. Neither Voyage Partners Financial Strategies, LLC nor United Planners Financial Services have reviewed the content of, and are not responsible for, the information of the results of third-party websites. 

Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Indexes discussed are unmanaged and cannot be invested into directly. Keep in mind that current and historical facts may not be indicative of future results.

This material is created by Horsemouth. Third party content is provided as a general source of information and is not intended as investment advice or a recommendation to take particular course of action. United Planners makes no representative as to its accuracy or adequacy.