Welcome to the Making Margin podcast! Greenway’s team is here to discuss common financial mistakes and to help you navigate them.
Meet the voices behind Making Margin:
Special Guest: Allen Starrett
Today’s topic is all about saving for college.
- College is expensive, and saving for it can be a big challenge, especially as it competes with other priorities
- According to US News, the average four year in-state college costs about $10000 year, just for tuition, and the average private college costs almost $37000per year
- They point out multiple times on their site that most students pay less than the sticker prices, thanks to financial aid and scholarships
- While an institution like Yale University in Connecticut, for instance, advertises a sticker price of more than $55,000 for tuition and fees in 2019-2020, the average cost to students last year after receiving need-based grants was around $17,000.
- And, college graduates earn more over their lifetime. A recent study from Georgetown University found that, on average, college graduates earn $1 million more in earnings over their lifetime. Another recent study by the Pew Research Center found that the median yearly income gap between high school and college graduates is around $17,500.
Discussion Topics:
- Saving for college vs. competing priorities
- Is college going to look like it does now when our kids are old enough to go?
- What are the best vehicles to use to save for college? How can they be utilized most effectively?
Take Away: Having a plan, for whatever you decide to do, is key.
Resources:
- Here is a good recap of ownership of a 529 by a grandparent and all the implications.
