Finance & Enjoyment Blog

College Saving Strategies: Start Saving Now

Turns out, it’s really never too soon to save for a college education! According to Bloomberg Business, tuition costs in the United States have increased faster (3.7 percent at private nonprofit colleges and 2.9 percent for in-state four-year public schools) than the rate of inflation (1.4 percent), which seems to be a trend in higher-education costs over the last decade. If there’s a silver lining with this news, it is that increases are smaller on average this year than in recent years. However, with just a cursory glance at these facts, it’s evident that getting some expert guidance for personal wealth management is beneficial to ensure all your financial goals are met.

Saving for Your Retirement—Priority No. 1

Most parents want to set up their children for success, and the first priority to achieve this goal isn’t saving for their college education, it’s to ensure our own retirement plans are solid. Since there are no grants or scholarships available to fund your retirement, your first step in saving for the high cost of a college education is to be sure you are actually saving enough for your own retirement.

Establish a Savings Goal

As long as you brace yourself for the sticker shock, use 2015 figures for the cost of college to get a rough idea of how much you need to stockpile in order to fund a college education in the future. There are several online college funding calculators available to determine how much you will need and how much you should save each month.

Take Advantage of Tax Breaks

It’s critical to have a savings strategy in place for college funding that maximizes tax breaks so that your savings and investments are working as hard as you need them to. Work with a professional financial advisor to be sure your plan has the right mix between taxable and tax-free investments. The pros and cons of qualified tuition programs also known as 529 plans, Coverdell Educations Savings Accounts and even other savings vessels such as U.S. Savings Bonds should be evaluated for your individual circumstances.

Annual Checkup to Be Sure Your Plan is Updated

If there is one thing we know for sure, your personal circumstances and the programs and tax implications for college savings opportunities will continue to evolve, so you should build an annual check-up into your plan to take advantage of the latest developments and adjust as you see fit when it’s time for a change.

How to Use this Information

Knowing the ins and outs of the best way to save for college is complex at best. Just as you rely on expert guidance in other fields, it’s imperative to work with experts in personal wealth management to help you navigate through an effective college education savings strategy. We are here to help! Please contact us online at or call us at 303-815-1100 so we can help you achieve your financial goals!

How much have you saved for your child’s college education and how have you done it?

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