2025 has been eye-opening for me as a freshman in college, interning at Ullmann Wealth Partners. During my first year in college, there were a lot of new experiences and adventures, but also responsibilities and pressure. I have noticed that many of my peers feel the same pressure I do, particularly about the future. Society has created this standard for us to: go to college, get a “good” degree, get a high-paying job, find a partner, buy a house, have kids, live happily ever after. Simple enough, right? Not quite, as you may know, life isn’t that easy.
When I started on my new adventure (college) at the beginning of August, I met a lot of people and heard lots of stories. But I quickly noticed how many students were just going through the motions. “I picked this major because my parents wanted me to.” “I just want to make good money.” Few people seemed truly excited about what they were studying. Not to mention the quiet judgment and competition between peers on chosen majors.
I also noticed this idea that we should have “fun” before we get thrown into working for the rest of our lives. So naturally, a lot of kids just spend their money and time as they please and don’t think about the consequences. Financial literacy isn’t exactly prioritized in college. Investing for many students is usually gambling with stocks or not considered until later in life. So, planning for financial goals is not on top of most people’s lists.
Society has taught us that we need to hit all these goals because everyone else did. This is winning at life. Understandably, parents want what they think is best for us, and peers just want to achieve their “peak.” Of course, having these things and meeting these milestones must feel amazing if everyone else wants me to hit them, right? Most are also afraid of the risk of starting their dream company or working hard to get that dream job and falling short. We are told to put our heads down and work super hard, and then we’ll be happy. Will I, though?
Once we graduate, we enter the real world, and most of us find a job and housing. Then we get involved in a serious relationship, and before we know it, we’re in a tough position. Should I continue renting, watching my money leave my pockets for good? Or follow the American Dream and take out a large loan and invest my money and life into a house? All this confusion and pressure affects us college kids. This leads us to the question: What can we do to fix this? Well, this is where planning comes in.
The Master Plan
Define your goals: I know sometimes I have a bunch of goals I want to accomplish, but I don’t think about how to get there. When you define your goals and lay out a plan, the solutions become much more apparent.
Saving and Paying Off Debt: Great! Now you know your goals and can start with the financial side of the equation. For me, the most important thing to do is pay off debt first because the interest expense could cancel out all investment gains. But while working to pay off debt, saving a portion of your income, if possible, is essential to cover unexpected expenses that can come fast!
Budget: The next thing we need to do is budget. So, we know we want to get rid of our debt and save for our goals. Now we need to determine where our money is going and if any adjustments are needed. A classic example is a simple cup of coffee. Rather than spend $25 a week at Starbucks, I could invest those dollars. When calculating what this $25 weekly coffee run could turn into, over 42 years (after graduating college to age 65) at a 7% return, it will turn that $25 a week into $300,000! This is just one example of the power of compounding and how we could easily change our lifestyle to fit our goals.
Investing: Now we can start investing! The best way to learn is by doing, and an easy way to start is through your employer’s 401 (k) plan. This is a great way to invest, and most companies will match your investment up to a certain percentage of your income, which is just free money!
Planning doesn’t mean giving up fun or freedom. It means taking control. Creating your life on your terms. Changing is not easy, but with the proper planning and a little bit of sacrifice, you can happily meet your life goals on your terms.