The US Department of Education projects that the average cost of a public college education will rise to $205,000 by 2030, making it one of the largest expenses a family will face during their lifetimes.
Like purchasing a home or planning for retirement, saving for college is a financial goal that requires guidance and planning, and one that should not derail your other investment plans. We can help you balance these goals and efficiently plan for both your futures.
As you begin the education planning process, it is important to consider all of your options. Unlike retirement, there are resources available to college students, including loans, scholarships and financial aid. In 2020, the average annual cost for a nationally recognized university is $41,400. By 2030, this is estimated to rise to $44,100. Few parents have the ability to provide the lump sum required for enrollment, which makes it crucial to begin investing early, building assets with an automatic monthly investment plan.
There are several options available for education savings including:
While the most popular option remains the 529 Savings Plan, each strategy has its own advantages and disadvantages based on your personal financial situation and goals.
Let us help you evaluate your options and start planning for your child’s education today.