Your High School Senior Wants to Take a Gap Year? It Might Be a Great Idea

Your High School Senior Wants to Take a Gap Year? It Might Be a Great Idea
Photo by Jean-Philippe Tournut / Getty Images

By Col. William P. Jensen, USAF (Ret), CFP® Candidate

When I graduated from high school ... um, a few years ago ... there were three options available to graduates in my southern hometown: go to college, join the military, or work on an offshore oil rig. No one had ever heard about nor considered what has come to be known as a “gap year.”

For those unfamiliar with this term, a gap year (also known as a sabbatical year) is typically a yearlong break between graduating from high school and attending a college or university. This concept is growing in popularity, with tens of thousands of young adults taking a year off from traditional educational paths to achieve various goals. If your child is considering this option, here are some financial tips to help guide you and your new graduate.

The Gap Year, Explained

For starters, it would be helpful to define what a gap year is not. This is not time off, it’s not a vacation, and it’s certainly not a scenario in which your high school graduate rolls into the summer months without any plans or goals. A true gap year is designed with a purpose, includes objectives, and, ideally, will be very beneficial. As this concept has expanded, young adults have realized they can accomplish a lot BEFORE they attend college or begin a new career. Let’s take a look at how to make that happen.

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Have a Purpose

What is your child’s goal for their gap year? How will your graduate-to-be productively use this massive amount of time? These questions reside a bit outside of the financial realm, but the answers will relate directly to how they will impact their (and your) financial responsibilities during this year.

Your child may already have a well-defined purpose. If so, help them stay on track as changes and challenges arise. If not, sit down and have several conversations to help them identify what they hope to achieve during this time. It will also help to establish timelines and expectations on income (or how they will support household needs). A helpful resource for both parents and graduates is the Gap Year Association’s website, which offers ideas on how to make the most of this year.

Establish a Budget

Nothing deflates a party or conversation like the word “budget,” but this will be key if you want to help your graduate develop a realistic structure for their gap year. Whether you use the dreaded “B” word or other phrases to address this important issue, your child must understand that there will be expenses they need to cover. Ultimately, it will help your child to determine what will be reasonable and normal costs for living expenses if they will be living in your home during this year. Remember, this is not time off or a vacation.

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Financial Aid

If your graduate-to-be has clear, or even nearly clear, plans to attend college, then they should still complete financial aid applications. Not doing so could be costly. College finance experts advise completing the federal government’s Free Application for Federal Student Aid (FAFSA) regardless of the student’s plans after high school. It’s also wise to complete the College Board’s CSS (College Scholarship Service) Profile if your student’s preferred college(s) use this application. Doing so provides options if your student has a change of heart or ends up deferring an acceptance from a university.

Develop Financial Goals

If your child plans to go to college in a year and is using the gap year to save for this expense, it will help them to see how much a typical semester costs at their desired university. As part of completing the financial aid process, a college’s net price calculator provides a rough idea of the official costs to attend school. However, the actual financial aid award letter will provide a much more accurate total financial picture. Use these figures to establish specific savings goals for the gap year. Seeing the actual costs on paper may push your child to get an additional part-time job or other means to raise more cash for savings.

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Enhance Your Résumé for Scholarships (and Future Jobs)

During the gap year, a savvy high school graduate can productively use their time to improve their résumé through volunteer work, community service projects, developing a skill (think music or athletics), or kick-starting a nonprofit for their cause of choice. These efforts can draw positive attention to their maturity, creativity ... and financial needs. One of the top tips to any scholarship application is to stand out from your peers. The gap year may be just what your young adult needs to secure a valuable scholarship and potential employment in the future.

Develop Some Focus

Taking a year off from school to live “real life” can provide much-needed focus for a young adult. For example, perhaps your child originally wanted to be a teacher, but their volunteer work at an animal shelter has made them realize they want to be a veterinarian. These are very different career paths that might have resulted in an extra year or two of college before coming to this conclusion.

The cost of those extra semesters is significant. Using the gap year to help further develop their professional focus may result in a shorter stint in college.

Consult an Expert

As with nearly any decision that has financial implications, it’s wise to consult an expert who can help you “run the numbers” and fully understand the finances of each option you are considering. Be sure to include your graduate-to-be in your meetings with your advisor so they can see and understand first-hand the real implications of their decision. I suspect it may help to hear some financial advice from an objective third party.

As the gap year concept becomes a more popular choice for those graduating from high school, it makes sense to be aware of what the financial implications will be for both you and your child. Taking a gap year can have many benefits that will only be further enhanced when your child’s purpose and objectives are addressed. Congrats to you both on reaching the end of the high school years, and best wishes for all your future plans!

Col. William P. Jensen, USAF (Ret), Certified Financial Planner® (Candidate), is a financial advisor and enrolled agent with Hughes Financial Services, LLC, in Herndon, Va. He is a Life Member of MOAA.

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