It’s back-to-school time, and for many, that means sending their children to college. However, studies predict that college enrollment numbers may be lower this year - due in part to college costs. Jeffery Price, Managing Director and Wealth Management Advisor at Price & Associates Merrill Lynch in Southlake, says it is important that families begin saving for college as soon and as wisely as possible.
In order to save for college, parents must first understand the costs associated. Speaking with a financial advisor can create a roadmap for parents, grandparents and all involved in the process.
This month, Jeffery offers his top tips for college saving. For more information, contact Merill Lynch Wealth Management Advisor Jeffery Price of the Southlake office at 817-410-4940.
1. It is important to understand the cost of college education. Calculating the cost ultimately depends on the college you choose (public, private or technical) and how much financial aid you could potentially receive. Doing some basic research and talking with your financial advisor can help you determine your goals and the options available to meet those goals.
2. As important as it is to understand the cost, you will also want to consider any tax benefits/consequences involved with education savings. Please consult your tax advisor.
3. With college costs on the rise, starting early can pay off later. The earlier you start, the more time you allow for your investments to grow which can help to reduce any amount that you may need to borrow down the road.
4. Whether you are investing for a child, grandchild, family member or even yourself, you can find the right type of account to pursue your education planning needs.
5. Investing for education should complement and work alongside other life priorities like retirement. It is important not to sacrifice your retirement savings to pay for education expenses. There are other funding sources available for education that you can utilize to help you meet your goals.
6. Evaluate your education goals and progress toward meeting those goals on a regular basis.