PLAN FOR COLLEGE, THEN START SAVING
With all the graduation celebrations this time of year, I am reminded of all the conversations with parents that are feeling stressed by the looming college costs. Without question, this is the one area in stewarding our finances that most of us think we could always do better. Before you get a second job, we want to help you take a step back and refocus your plan for paying for your child’s education.
AGREE ON THE PRIORITY OF YOUR GOALS
Long before my wife and I had our first child, we had many “discussions” about paying for college. It was amazing how our own unique individual experiences with how we paid for college had shaped our preferences toward our future children’s expenses. No matter what you agree on – pay none, pay some, or pay all the costs – remember that there are no retirement loans. If you have not saved for retirement, which will cost you more?
To work a few more years and help your child pay off a student loan or to depend on them to support you because of inadequate retirement savings.
1 – Make sure that you prioritize all your financial goals.
2 – Have agreed on what expenses you will pay
3 – Develop excess discretionary income, then direct it toward college savings.
BY CLINT SNEAD, CFA®
BOX FINANCIAL ADVISORS