Senior Advisory

Senior Advisory is a different breed of cat. Seniors are generally ready to move on, and many might never be at school at 8:00 due to scheduling. If they have class at 8:20 though, they are required to participate in advisory. This might be the most critical year of advisory for many seniors. This is the year you, as their advisor, can increase their awareness of the many things they will need to know as an adult. There are severalweb pages here with different activities about "the real world" for them linked below. Please either take advantage of these or create your own, but this might be the last opportunity for many to consider some of these aspects of their adulthood in an advisory situation.

Insurances :

Health Insurance : Most kids have been under their parents' or school plan for health insurance. Although this may one day be covered for all Vermonters, at this point students should consider what the costs of good health might be. If students are continuing on to college or a technical school as a full time student, they may still be covered by their parents coverage, but they need to check with their carriers to be sure. If they are taking "a year off" many companies will offer a one year policy to cover their year. If they are not going on with college or technical school, they will need to consider a policy of their own. They need to consider what kinds of coverage they might need. For example, if they are very healthy and don't work or play at risk, they may want one with a high co-pay or high deductible. Please go over varying options with your students and have them truly consider how they will be covered next year. Included in your packet is an insurance quote for several options. To see the average costs of surgery please go to costs of surgery, 2003. Remind you students that these are costs for 2003 and health care costs tend to increase by 8.8 % annually.

Car Insurance : Many students will already know about the woes of car insurance. Many will have had it paid by their parents. Factors to consider are age of the car, model of the car, age of the driver, amount of deductible, number of points they may have from tickets and number of accidents they may have had. The website www.teens.progressive.com will help students to answer questions for your students about insurance. They should consider whether they want to carry collision or comprehensive as well as the mandatory liability. You may want to schedule an advisory in the computer lab at this site getting hypothetical quotes for car insurance.

Renters insurance : Many of your students may choose to get an apartment the following year. please make sure they understand that in the case of theft or fire, their belongings in an apartment are not covered by the landlord's policy. They need their own policy for renter's insurance.

Finances :

Bank accounts : Students have tremendous options for bank accounts these days. They should consider whether they want savings or checking, electronic banking, check cards or credit cards , checks or savings books. They can choose to have things many of their bills paid by auto pay. They should look carefully to see what the options are and which ones are free.

Developing credit : Students are at an age where they need to consider different ways in which to establish credit. They might choose to get a credit card with a low ($300, or $500) credit limit. Make sure they understand what 18% interest looks like as well. Remind them they can shop around for lower rates as well. Another way for students to develop credit is to take a loan for a car. Even if their parents have to co-sign, this is yet another way to develop credit. Having a utility bill in their name develops credit as well. Likewise, if they don't come through on any of these it can have the reverse effect and hurt their credit scores. It's time for them to start to consider their credit.

Savings...yeah right ! students need to think now about starting to save. Whether it's for an emergency, a "rainy day", a house, or an early retirement, students should always be sure to save at least 10% of each take home check. They have options to save in money market funds, bonds, high yield savings accounts or stocks. The liquidity of the savings vehicle should be determined by the reason for their savings. If it is for something in the near future, a high yield savings account or money market fund might be right.Bonds or stocks are better for long term savings.

Cathy Stoverl.