Questions to ask your financial planner about saving for college
Saving for your child’s college tuition can be difficult, but working with a financial planner on financial planning can make recording much easier to navigate. Wherever you are in the process, here are some questions to ask your financial planner about saving for college:
How much should I save?
With tuition fees changing, it can be difficult to determine what your savings goal should be and how much you should save each month. If you’re not sure how much to save, this is a great question to ask your financial planner. They can help you calculate how much you’ll need to save based on your child’s age, expected tuition, and any scholarships or financial aid you expect to receive.
How to save effectively?
There are many options when it comes to saving for college, and a financial planner can advise you on the right savings vehicle that best suits your family’s financial situation. They may recommend special tax-advantaged college savings accounts like a 529 plan, Coverdell college savings account, or other investment vehicle. Working with a tax specialist, they may even be able to offer advice on how to make tax-efficient contributions and withdrawals.
How do I save for multiple children?
Sending your child to college can be a huge financial undertaking, and it becomes more difficult if you have more than one child. Costs and fees can add up quickly, and they can end up at different schools with different tuition, scholarships, and financial aid.
Fortunately, a financial advisor can take into account your overall financial situation, including the age of your children and their intention to attend a public or private college, and help you find the best strategies to save the tuition of several children.
How do I incorporate college savings into my budget?
Financial planners can help you set a budget to achieve a financial goal. So asking how you can set aside money for college savings is a good place to start.
They can determine how much it’s reasonable to contribute and suggest different strategies, such as reducing your overall expenses or contributing a certain amount each month. A planner can also ask questions to determine where saving for college is a priority relative to your other financial goals and help you budget accordingly.
Should I take out loans?
With the number of loan options available, deciding which ones to take out – and whether to take them out – can be overwhelming. If you are unable to save the full amount needed for college, you can discuss your other options with your financial planner.
They can tell you about the resources and strategies available to finance tuition, explain the potential impacts of loans on your overall financial plan (and your child’s) and plan how student loan debt can be repaid in the future. Your financial planner will work with your other advisors, such as your tax professional, loan service provider or banker, to help you determine the best course of action for your situation.