Financial planning for your children’s future
How do you balance the lifestyle you want in retirement with your desire to give your children the best education possible? When we do education planning, we talk about goals for your family as well as the values driving your choices.
In the context of the whole financial plan, including tax considerations and your investment portfolio, plus your own dreams, we can get a sense of what’s possible and how to work toward it. We strive to help you provide an education for your children while continuing to plan for important goals in your life. We often remind clients that it’s possible to take out loans to finance an education, but you can’t for your retirement.
Some of the questions we consider include:
- Do you want your children to have a financial stake in their education?
- What expectations do your children need to be working toward now?
- How do you plan for multiple children attending college?
- How are your ideals impacting your decision-making?
- Will committing to an expensive school lock you into staying at a job you don’t like?
- What will happen if a child decides to delay entering college?
There are many types of accounts that will work to set aside money for college education. Control, tax consequences and funding limits are some of the many variables we will discuss with you and together we can determine the best fit for your education goals.
What can children do to help plan for their college education?
- Get good grades
- Volunteer and show a history of involvement and leadership in activities
- Take ACT review tests (many scholarships are based on grades and ACT scores)
- Take classes for Advance Placement (AP) and college credit during high school
- Take classes at a local community college during the last year of high school (these are free to high school students)
- Work a part-time job