On Monday we kicked off the new year talking all about money, and I mentioned my college funding goals for my three boys. Today, as promised, I’m going to do a deep dive into my college savings strategy and experience over the past fourteen or so years. My three boys today are 14, 10, and […]
“Your kids can get loans for college, but you can’t get loans for retirement”. This is not always true. When you’re evaluating your college saving and spending strategy, you need to keep in mind that if you earn a high income your children might not be eligible for loans. Read all about when this makes sense, and when it doesn’t.
A college compact can help you to set priorities and goals for college saving and spending. It’s an agreement you make with yourself and your kids on what you will-and won’t-do when it comes to college. Laying this out ahead of time is a great way to make sure everyone’s on the same page, expectations are set correctly, and you both are clear on what the families priorities are.
Whenever a birthday or holiday comes up, it’s a great opportunity to ask for the gift of college funding as a present. If you do that consistently over many years, you’ll find that over time your kids will develop a significant amount of funds to go towards college. In this article I break down the different college gifting options by state.
If you’re a high income earner, you’ll need to remember that colleges don’t give you aid if you don’t feel like saving. The other day I had a conversation with a friend where he made it clear that he was hoping there was a magic way to get tons of college aid on an income of around $200k per year. At that income level, the government expects that you’ll be responsible with your money and save some of it for college.