We have been talking about retirement planning and investing and how to go about getting there with dignity. The biggest question I get concerning planning for the future is “what about my child’s education”?
One of the biggest hindrances to achieving financial success is children. It is not of any fault of the children or that children are too expensive. The problem is that as a society we feel pressure to give our kids everything. What is the most expensive culprit? College education. It is important for our kids to succeed and equally important that we help them do so. That does not mean making illogical decisions though. That is why college planning is step # 5 which comes AFTER getting out of debt, saving up 3-6 months of expenses in an emergency account and putting 15% of your income towards retirement. If you are not financially secure and have not made proper steps so that your financial future is secure, you will be more of a drag on your kid’s purse than the lack of a college degree will ever be. If you are unable to help your kids with college expenses without going into debt, don’t panic. There are ways to get a higher education on the cheap (community college for basics, grants, in-state is cheaper, etc.). We could explore lots of options on this subject, but this blog is about being productive with money, not how to go to college cheap.
However, if you are in a good position financially, let’s help out the kids. Starting when they are young is crucial because you have the opportunity to take advantage of the wonder of compound interest. There are lots of options for education savings accounts for your investments to grow tax free for the strict purpose of your child’s education. Be careful, there are a lot bad choices as with any investment opportunity (stay away from prepaying college tuition). Make sure you do your research on fees involved and that you have an account that lets you pick the investments.
This is a tricky subject, but if you have made it to step # 5, you have a great opportunity to help your children avoid starting their career in debt. I don’t want to write a book here, this is a blog, not a self help book.
If you have questions about this subject, comment or send me an email and I will do my best to answer your question.
My name is Tim Parady and I am 36 years old. I was born in Connecticut, raised in Virginia, had a brief layover in Kansas which led me to Texas where I met my wife and best friend. We just celebrated 145years of marriage.
I have the best job in the world, which is to improve peoples lives. I teach people how to win in all areas of there money, which affects all areas of their lives.
78% of Americans live paycheck to paycheck, with no money in the bank and little knowledge of how to invest for their retirement. You can have a different future. You can win with money and I can show you how.
I am an independent Dave Ramsey Financial Coach,and Insurance Agent at Alkali Insurance and I am here to serve you. My goal is to provide knowledge and tools to change your life. To schedule an appointment to address your financial needs and goals, email me at firstname.lastname@example.org