As a parent, you of course want to give your child the best opportunity for success, and for many, attending the “right” university or college is that opportunity. Sadly, it doesn’t take a degree in finance to see the cost of college continues to rise. You maybe asking yourself "Is college worth it?" But before you throw your hands up in the air and send junior out looking for a job, you might consider a few strategies to help you prepare for the cost of higher education.
First, take advantage of time. The time value of money is the concept that the money in your pocket today is worth more than the same amount will be worth tomorrow because it has more earning potential. See the benefits of time value with our helpful college savings calculator.
Second, don’t panic. Every parent knows the feeling – one minute you’re holding a little miracle in your arms, the next you’re trying to figure out how to pay for braces, piano lessons, and summer camp. You may feel like saving for college is a pipe dream. But remember, many people get some sort of help in the form of financial aid and scholarships. See this useful chart to help determine your expected family contribution.
Finally, weigh your choices. There are a number of federally and state-sponsored, tax-advantaged college savings programs available. Find information about the State of Michigan sponsored 529 plan by clicking here.
As a parent, you teach your children to dream big and believe in their ability to overcome any obstacle. By investing wisely, you can help tackle the financial obstacles of funding their higher education – and smooth the way for them to pursue their dreams. With resources like this college planning essentials brochure and our team of experts, it’s never too early (or too late) to start!
We are here to help. We specialize in thorough, uncomplicated financial guidance in a language you can understand.