Most parents want their children to achieve at least a four-year bachelor’s degree from college. Partly it’s emotional: “My kid graduated from Stanford. What about yours?” But the bigger driver is more commonly the fear that without a college degree, their son or daughter will simply be unable to compete for the higher-paying jobs of…
Read more
When it comes to their children, many parents take the view that supporting their kids is first priority. That’s admirable from a family standpoint, but may not be optimal from a financial one. And nowhere does this have bigger consequences than with college expenses. A common question I encounter is whether or not it’s possible to…
Read more
As of the third quarter of 2015, student debt in the U.S. has soared to nearly $1.25 trillion. That’s trillion with a “t.” As little as ten years ago it was only $350 billion, less than half the amount of credit card debt held by consumers. Today it’s 70% higher. Why is this happening and…
Read more
Last year I wrote about a strategy involving 529 plans designed to maximize the financial aid a college student could receive (see http://www.cognizantwealth.com/2014/03/10/best-place-to-hold-your-529-plan/). To summarize the original strategy: if you split your savings into two 529 plans, 75% in one owned by the student’s parent and 25% in one owned by the student’s grandparent, you…
Read more
When it comes to saving for college, most people think about setting up a 529 College Savings Account. However, you can also use individual retirement accounts (traditional IRA or Roth IRA) as well as 401(k) plans to pay for most college expenses. But you have to make sure to follow the rules carefully; otherwise you…
Read more
If you have a child, chances are someone in your family has set up a 529 college savings plan for him or her. Most of the thinking involved in setting up a 529 plan revolves around which state’s plan to utilize. Less thought is generally given as to who should own the plan, and the…
Read more
New college graduates these days face the same financial challenges that young workers have faced for the last several generations. As they enter the workforce there’s the cost of an apartment, perhaps a used car if public transportation is lacking, and of course their personal preferences for entertainment. At some point during their evolution they…
Read more
Parents who want to save tax-free for their children’s college expenses are facing a growing array of choices. As of the end of last year, according to a Morningstar report, there were over 80 tax-free 529 college savings plans offered by 48 states. If you feel that a 529 plan is the best choice for…
Read more
The President’s Advisory Council on Financial Capability recently released Money as You Grow, a website that provides 20 essential, age-appropriate financial lessons—with corresponding family activities—that kids need to know as they grow. Written in down-to-earth language for children and their families, Money as You Grow is intended to help parents equip kids with the knowledge…
Read more
The cost of higher education at both public and private colleges has grown 440% over the last twenty-five years, according to the National Center for Public Policy and Education. That’s nearly four times the rate of inflation and double the rate of increase of health care costs. Possibly as a consequence, total U.S. student loan…
Read more
Recent Comments