When talking about college funding, we hear it all:
- “College is the most important thing we can do for our children.”
- “We want to fund what we can afford.”
- “I don’t want to pay a dime.”
- “I don’t want my kid to suffer with student loans.”
- “This money should go toward my retirement, not my kids – they can get financial aid.”
- “My kid should stay in state, but they want to go out of state.”
- “Why fill out the FAFSA? We won’t get any financial aid anyway!”
- “We don’t need to save for college. My kids will go to a trade school.”
- “I don’t understand the difference between a College 529 plan and a Roth IRA."
Everyone has a different perspective. There are many different philosophies and strong feelings when it comes to college. Many parents don’t agree with each other, and that is okay.
People jump into the college planning process at different points in time. Sometimes college planning is discussed before a child is born. Other times, it is discussed after a student graduates with debt.
We help parents become confident in their college saving and funding decisions.
Better early than late.
Better late than never.
The best time to plant a tree was 30 years ago. The next best time to plant a tree is today. There is never a wrong time to discuss education planning and funding. The earlier you begin to plan, the smaller the financial burden, now and in the future. Additionally, the sooner you begin to plan, the more options you can have available to you.
For parents worried they waited too long or find themselves in circumstances that prevented the desired level of savings, there are always financially savvy options to pursue. However, the longer you wait to start the conversation, more and more options can come off the board. Total cost of tuition and earnings potential are critical things to consider for late-stage college planners.
Financial Aid or Financial Burden?
Many parents assume their best option is to wait and fund college with financial aid. They believe delaying the conversation will make more financial aid available. They fail to understand that financial aid is often debt; it is not just scholarships or grants. The reality is that funding college with debt significantly increases the final cost when interest is factored in.
Reducing the Noise
Whether you’re a young family, a parent of a high schooler, or a grandparent seeking to bless future generations, it’s never too early to talk about college funding. We ask the questions that help our clients avoid regret. If you’re speaking in absolutes – “We should never…” or “We should always…” – know that college funding is not an all-or-nothing proposition.
So let’s talk through all of the options. Things like:
- Paying for part of college.
- Identifying ways that your child or grandchild can be a co-investor in their education.
- What to do if your child decides not to get a traditional four-year education, even though you’ve saved for it.
In the end, you and your child should feel confident, relieved, and ready for what comes next.
College funding is personal and often based on our own life experiences – things we wish we had done (“I should have gone to college!”) or things we did that worked for us (“I didn’t go to college and I was still successful!”). What worked (or didn’t!) for you does not necessarily mean that your child or grandchild will have the same experience.
In an age of a rapidly changing career landscape, each family needs to take the time to talk through plans A, B, and C for college funding. We’ll help you.
