Evans Wealth Management Blog

Articles written by Evans Wealth Management are designed to educate clients & potential clients on concepts important to their financial future.

Balancing Children's College Tuition & Retiremen

Balancing Children's College Tuition & Retirement

Many parents struggle when it comes to deciding how to lay aside funds for both college and retirement.

Retirement or College fund, where should money go?

 

Some questions to consider:

  • How long until you retire?
  • How financially prepared are you for retirement?
  • How long until your children attend college?
  • What is the projected total cost for college?

 

    Points to consider:
  • Parents should review their current budget. Are there adjustments that need to be made to free up funds for college savings?
  • Few pay the full college list price. Most receive some form of scholarship. A 2015 study suggests 90% receive some form of financial aid reducing the cost on average 54%*
  • The costs of a 4 year degree vary widely depending on the school your children plan to attend. Take a look at in-state, out-of-state, public and private options. Then set expectations with your student, based on your budget, well in advance of the time when he or she begins applying for acceptance.
  • Parents don’t have to fund the full cost. Establish a percentage of the cost that you are comfortable with and stick to it.
  • The conversation about funding college is a great way to teach your children lessons about wise financial decision-making. When both parties are allowed to share their expectations, a path can usually be found that satisfies all parties.

 

One last thing to remember: there is no financial aid for retirement ,so it takes precedence over funding college. Short-changing your retirement could lead to many regrets down the road.

* referred source http://www.thefiscaltimes.com/2015/10/27/Never-Pay-Full-Tuition-3-Ways-Reduce-Cost-College

 
4 things to think about involving Spouses and IRAs

Featured News

Financial Briefs

Contact Info

Call Us: 770 828 8303
Email: admin@evanswealthmanagement.com

6340 Sugarloaf Parkway, Suite 200
Duluth, GA  30097