“Education is the most powerful weapon which you can use to change the world.” — Nelson Mandela
A good education is something every parent wants for their children. The question is how to pay for it?
College costs have risen over 500% in the last 30 years, so it’s more important than ever that parents who want to provide a college education for their children start saving early and take full advantage of all available funding options and incentives.
Grandparents who want to help can take advantage of college savings programs, and they can also use family gifting and other estate planning strategies to leave a valuable legacy for their grandchildren that emphasizes the value of an education.
ABC News – College tuition has skyrocketed 570% over the past 30 years, but knowing how to work the financial aid system can help you find more aid. Here are a few tips that may help. (2:56)
PBS NewsHour – Americans owe $1 trillion in student loan debt. How did that happen, and what’s the impact on the nation’s economy? Economics correspondent Paul Solman reports. (8:28)
At Abiding Wealth Advisors, we use a variety of financial planning tools and resources to assist our clients who don’t know how to pay for a college education, including two specialized tools to help with Education Planning:
We created a proprietary tool that allows us to calculate the breakeven point of college costs based on the intended school, major, career path and living situation, to help prospective students make an informed decision when choosing a program.
Tell us where they want to go to school, what they plan to major in, what they plan to do in their career and whether they will be living on- or off-campus, and we’ll give you an idea of how long it will take for them to recoup the cost of their education after they graduate… and we can compare different options so they can see the difference in cost between the options they are considering.
This helps them see the connection between what they will earn and what their education will cost, and shows them the difference– in the number of years they will have to work to pay for it– if they choose a less expensive program or living situation. It can be a real eye-opener.
Our client financial planning software, which is free for all of our financial planning clients, includes an education planning widget that allows you to set and track progress toward your education funding goals.
Below are handouts with basic information about college education today– what it costs, what the impact of inflation is on costs, funding options, tax incentives, education savings accounts and qualified state tuition programs. Click the handout(s) you’re interested in to download and view them.
If figuring out how to pay for a college education for your children or grandchildren is one of your financial planning goals, check out the resources at the bottom of the page for calculators and other sites to visit for more information.
If you still have questions, or would like us to run a college cost breakeven analysis for you, contact us.
We will be happy to help you find the answers you need and to help you choose the best option from your available choices, so you can create a workable plan to fund your children’s or grandchildren’s college education.