Saving on, not just for the cost of college.
Today's college "dilemma".
As a parent, you face a huge challenge today – you want to fund a college education for your children, but you also know you need to stay on track for retirement. And, it's very likely that these two goals are competing for the same financial resources. Furthermore, the average costs of college are already high, and are continuing to increase each year.
Take a look at the 2014-15 annual averages according to CollegeBoard.org:
→ Public 4-Year In-State: $18,943
→ Public 4-Year Out-of-State: $32,762
→ Private 4-Year: $42,419
Now, factor in 5% inflation, multiple that by 4 years, and then multiply that total by 2-3 kids. We'll skip the math, but it's safe to say that the tally is NOT small. Gulp.
As hard as it is to save for college, you know how valuable that degree will be for career placement and your student's future quality of life. And while there's no realistic alternative to funding a secure retirement other than disciplined saving, there are ways to reduce your out-of-pocket expenses when it comes to college education costs.
There's more than one way to pay.
Many people think that college planning is merely an exercise in saving as much as you can before your child turns 18. And while saving into education-specific investment accounts is important, it is only one of four components of a solid college funding plan.
The 4 components of a truly comprehensive college funding plan include:
- Smart School Selection
- Maxing out Financial Aid
- Intelligent use of your Personal Resources
- Capitalizing on Tax Benefits