The idea of entering college has always been an exciting venture. The joy is tenfold when it comes to your child, however, especially since you’re dedicated to making their dream life happen. College is certainly a stepping stone towards the right direction, but every good thing comes at a price. Paying for higher education can be difficult, as it never comes cheap.
You’ll need to figure out not only tuition fees, but supplies, textbooks, transportation or accommodation, and other personal expenses your child needs to get through. This is regardless of whether or not they choose to go to a private or public school.
While loans are definitely an option, countless students across the country now find themselves drowning in debt. You’ll naturally want to find ways to pay for your child’s education, which is why it’s only fitting that you incorporate it into your financial plan as early as possible.
Here’s what you can do to make it happen:
Adjust Your Income Accordingly
Although aids like scholarships are attainable, you may want to begin moving your income around. It’s easier said than done, but saving a little extra for your pockets in the coming years ensures that you remain living a comfortable life, all the while having enough to pay for your child’s college education.
The idea here is to work a little harder than necessary, preferably saying yes to extra pay. Bonuses should also be pooled into college funds, cutting off unnecessary purchases. The task will be difficult, but you’ll soon find that there will be enough to help them get started on their dream careers.
Keep Careful Track of Your Investments
You likely have bonds, mutual funds, stocks, or other investments already existing. You can sell them as you wish, as the extra funds can help you pay for college in the future. However, keep in mind that some stocks can earn more by leaving them be.
Simply selling your investments could lead to unnecessary taxes and other consequences, so it’s best to seek the help of an expert. In this way, you ensure that you’re making a sound financial decision—and not just out of a desperate need to provide and prepare for the future.
Go Beyond School Brand Names
The school search will be exhausting. You and your child will want to chase only the best opportunities, which is why you’re likely looking at Ivy League schools. There’s UCLA, the University of Notre Dame, or even Harvard. Being both popular and exclusive, nothing quite beats being part of such prestigious college communities.
Unfortunately, such schools are riddled with hundreds of thousands of applications every year. Applicants will need to gain a hefty amount of leverage to get financial aid, especially since the costs are high. It’s vital to remember that these are just names, though—similar programs exist in other lesser-known schools, but this doesn’t mean less quality education.
The Bottom Line
You love your child more than anything in the world, which is why you’re working hard to making a good life happen for them. This means saving enough money for them to get to college but don’t let desperation and enthusiasm cloud your decisions.
Incorporating their college education into your financial plan may sound daunting, but it shouldn’t force you to give everything up. Plan smart, so keep arming yourself with information. You don’t need to sacrifice your retirement for their dreams, after all.
For the best financial planners in Charlotte, NC, we’ve got you covered. Calamita Wealth Management is a fee-only financial planning solution, ensuring that you invest smarter for the best future. Reach out to us today!
