Paying for college can be one of the most daunting financial challenges parents face, but a well thought-out plan that combines good parenting and sound financial planning can make it manageable. On this episode of CFO at Home, Vince talks with Ann Garcia, author of "How to Pay for College," about strategies to effectively save for college, prioritize financial goals, and navigate the myriad of scholarship opportunities available. Ann shares invaluable insights on the importance of early planning, the benefits of 529 college savings plans, and how to balance saving for college with other financial priorities like emergency funds and retirement. You can learn more about Ann by visiting Howtopayforcollege.com
Key Takeaways:
Start Early: The ideal time to start saving for college is as early as possible, even before the child is born. 529 plans are a highly recommended vehicle for college savings due to their tax advantages.
Prioritizing Savings: Emergency savings should come first, followed by retirement, and then college savings.
Scholarship Opportunities: Every student is eligible for scholarships somewhere. Researching and applying for scholarships can significantly reduce the cost of college. Colleges offer need-based and merit-based scholarships, and there are scholarships for a wide range of skills and activities.
ROI Analysis: It's crucial to consider the return on investment when choosing a college. This includes evaluating the cost of the college and the potential earnings from the chosen field of study.
College Experience: Factors like mentorship, faculty engagement, and opportunities for applying classroom learning outside the classroom contribute more to future success than the type of college attended.
Key Links:
