You have big dreams for your kids – and their education is a big part of those dreams. Effective planning helps determine the best way to save for and pay for their schooling. Plus, it ensures education savings plans and college funds are balanced with other important financial goals such as retirement planning.
For younger children, you have the benefit of time for your college fund investments. If you start saving early, your investments can grow over a longer period of time – that’s certainly good news. Saving for kid’s education is also great opportunity to educate them about financial matters. As your children get older, don’t miss the chance to talk to them about what they want to do in life and the financial implications of their decisions. They may be interested in a specific career or field or have their sights set on a certain type of school. Ultimately, their goals may shape your saving choices and how much you contribute each month. Education savings plans can also be useful in demonstrating the value of saving and investing to teenagers.
As college gets closer, you should find time to share the options and plans to pay for college expenses, including tuition, books, living costs, transportation and fund money. There is no one right answer; having children pay for some or all of their expenses through part time work can be a great idea for some students but focusing on school may be best for others.
If you are ready to start planning for your child’s education, we can help provide insights, clarity and confidence to help you see the big picture.