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M.A. Kluemke and Associates

Parents, Don't Leave it to Last Minute to Save for College

If you're like my husband and me, you want your kids to go to college. At the same time, the cost of college is probably one of your biggest financial concerns.

By starting a savings plan early, even before your kids begin elementary school, you can reduce the burden of taking on debt to pay for their higher education.

I’ve heard a lot of excuses from parents of kids my daughters’ age that they don’t save for college. These have included:

“We don’t have the money to save,”

“I don’t know where to invest,”

“Our kids will get scholarships, so we don’t need to save as much for college,

”Our kids won’t be eligible for student aid if we save for college.”

My answers are:

“It’s better to have a savings plan even if you have to add a little at a time,”

“It’s better to save than it is to borrow,”

“If properly structured, your savings will not impact your kids’ eligibility for student aid,”

“It’s most likely that you will have to pay something towards the cost of your kids’ college expenses.”

When you start planning for your kids’ higher education you don’t just see an increase in savings, but you also get peace of mind. Whether your kids are in kindergarten, elementary, or middle school it’s better to start now than never.

Get in touch and we’ll walk you through the pros and cons of a 529 plan – a tax-advantaged savings plan specifically designed to encourage saving for future college costs. We can also discuss other alternatives such as a regular investment account, Roth IRA, or even life insurance.

By Erin Gutzman

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck