Funding your child’s future through education is a huge investment. Where else would you allocate upwards of a quarter million dollars, and not have some form of agreement in place, addressing who does what, for how long, with protections in place if any of the parties don’t live up to their word?
Whether you’re saving, investing, spending, bequeathing, or receiving wealth, there’s scarcely a move you can make without considering how taxes might influence the outcome. Make the best use of these “tools of the trade.”
To help reduce the expected costs of college expenses, parents can invest in assets that are expected to grow their savings at a rate of return that outpaces inflation. By doing this, college expenses may ultimately be funded with fewer dollars saved.
Sending a student away to college is the bridge between childhood and independence. As you prepare yourself and your child for the transition, tackle this list of important issues to consider beyond course selection, checking accounts and living arrangements.
For your children’s and your own well-being, remember that a college degree is an investment. It is not sacrilege to speak to your child about the return on investment of their degree, measured by the salary he or she can expect to earn with the degree. In fact I recommend it
Begin your conversations about paying for college with your children early, based on their individual interests as well as your realistic abilities to financially assist them. Show them (in raw numbers) how their particular school choices will directly impact your and their own expected financial outcomes as well as their educational success.