School for many kids started earlier this month. My kids are in their fourth week already. They are already looking forward to getting out in May next year. Tuition is in the air.
And because one of my kids is in his second year of college, that means I’ll be send more tuition money to the school very soon–for the spring semester.
Earlier this year I wrote a short blog about student debt. In short, we are saving early and often. My three will be working hard to do well. They will apply for scholarships. And, they will all have part time jobs in an effort to make their way through college with as little college debt as possible. How much college debt is enough?
When my youngest begins college in five years tuition will be even more expensive than now. And so will room and board.
“Higher education may come with a high and increasing price tag, so it makes sense to plan well in advance. There are many unknowns involved in education planning, and there is no “one size fits all” approach to solving the problem. By having a disciplined approach toward saving and investing, however, parents can remove some of the uncertainty from the process.” Dimensional
Here is a one and a quarter page article by Dimensional on saving and investing for college, called Back to School. The inflation statistics may help you think through what is necessary. If you wish to help your kids or grandkids pay for some or all of their schooling it will be worth the read. It also discusses investing, risk management, and diversification.
There are many ways to tackle the college costs. I talk through a variety of ways with my clients to find what is best for them. In the end, planning and acting early is the best approach.
As I always say, “Save early, save often.” And, as one of my guiding principles states, “Save and invest for the future.” If you have a goal of helping someone pay for their education, begin planning now.
Feel free to call me if you need help. It’s not necessarily the easiest goal to accomplish. Like my first guiding principles states, “Get good counsel.” An old proverb of Solomon states, “Plans fail where there is no counsel.”
Be wise, Dan