College Degrees, Debt, and Financial Readiness: Smart Choices for Students and Parents

One of the biggest financial decisions young people make is choosing a college degree. Education is an investment in yourself, but not all degrees carry the same marketability. Before committing tens of thousands of dollars and years of your life, you need to ask: will this degree actually pay off in job opportunities and lifestyle? Talking to recent graduates in your chosen field is one of the best ways to get a realistic picture of salaries, hiring trends, and work-life balance.

Take political science, for example. It’s a fascinating subject, but without pairing it with law school, public administration, or another advanced degree, the job opportunities can be limited. It’s not about dismissing passion—it’s about weighing passion against long-term financial independence.

Debt adds another layer of complexity. One graduate I spoke with carried $40,000 in student loans and $2,000 in credit card debt. The first step isn’t to panic it’s to establish stability. That means securing a job, even if it isn’t your dream role, so you can make minimum payments and start building momentum. A four-step process works well here: join a retirement plan at work, pay down high-interest credit card debt, build cash reserves, and then invest in a diversified portfolio. Laying this foundation early is essential for long-term security.

At the same time, new opportunities are emerging in fields like nanotechnology and micromachines. Imagine tiny devices inside the body monitoring health or delivering treatments. This isn’t science fiction it’s a growing industry with enormous potential. For students, multidisciplinary education in physics, biology, and engineering can open doors. For investors, watching these sectors closely could lead to early opportunities in transformative technologies.

Parents also face financial challenges when supporting their children. In fact, 13% of adults between 40 and 60 are supporting both their parents and their kids, creating a squeeze on their own retirement savings. For families borrowing for education, life insurance becomes critical if parents co-sign loans, they are still responsible if something happens to the child. With college costs so high, and dropout rates near one-third, it’s important to weigh the risks.

Budgeting remains one of the simplest yet most powerful tools in financial planning. Start saving early, track expenses, and plan for surprises like vacations or car repairs. I’ve never met someone who complained about saving too much but I’ve met plenty who regret not saving enough. Living paycheck to paycheck is often a budgeting problem, not just an income problem.

And don’t underestimate the power of non-verbal communication in financial and career decisions. Reading people’s body language whether in a job interview, a business meeting, or even a college networking event can help you gauge if you’re in the right environment. Children do this naturally, but adults often lose the skill. Smiles, eye contact, and open posture can tell you more than words.

The key takeaway is this: financial readiness requires preparation and awareness. For students, that means evaluating the long-term value of your degree, budgeting effectively, and starting retirement savings early. For parents, it means balancing support for your children with your own financial security. And for all of us, it means being intentional with money, career choices, and investments in the future.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.