Getting into college is just half the story. Funding it takes planning.
Quality education is a doorway to a successful career and social mobility. Yet, education is also the second-biggest expense in a lifetime, right behind housing. And budgeting for education can be tricky. You may not be able to predict your child’s or grandchild’s future education choices but you can start to plan for the following risks:
- Escalating school or university fees
- Diminishing quality of life to pay back student loans
- Early withdrawal from school due to a lack of funds
- Having to tap into your retirement savings
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Key Considerations For Funding an Education
Access an interactive checklist that provides you with an assessment of 20 of the most important planning issues to consider when funding your child's education.
Why is Education Financial Planning Necessary?
Hedge Risk
Secure Child's Future
Avoid Debt
According to the Federal Reserve, American student debt stood at a crippling $1.74 trillion as of Q3 20231. And it is bound to increase even more with a growing number of parents unable to fully fund their children’s education.
At Samalin Wealth, we eliminate the guesswork surrounding education funding. Backed by a team with over 100 years of combined experience, we customize robust strategies tailored to your income, investment portfolio, and financial aspirations, establishing a dependable pathway to realizing your child's educational dreams.
Five Steps to Start
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Be slow, smart, and diversified
By working with a team of financial experts you can lessen the stress of student debt for your child. In the process, you can also reduce the financial shock of any educational expenses to your own portfolio.
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Set the Right Goals
Estimate the amount you need today to reach your goals. Consider the escalating costs of a college education, which usually triple every 17 years given the average rate of inflation and other factors.
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Know that No Two Plans Are Alike
It would not be advisable to copy your friend’s or colleague’s education financial plan. Your plan should be curated to your unique situation: type of education/college, current savings, college start date, expected income increase, and so on.
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Make Regular Contributions
Once you have decided on a plan and investment mix, it’s time to start. Exercise the financial discipline you need to set aside money for your education fund every month like clockwork. If you start missing them, we can help you to get back on track.
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Stay Updated
As your financial commitments and life situation evolve, you may have to reassess your education financing plan. It's always a good idea to monitor the markets and your portfolio regularly to keep your plan optimized.
Give Your Child Access to the Education of Their Choice
Here's why Samalin Wealth is your expert to tackle planning for education funding costs:
Guide to the Right Goal
According to the College Board, for the 2023–2024 school year, the average total cost of attendance at a four-year public college for in-state students is $28,840, while the average cost at a four-year private college is $60,420. We help you set the right expectations to build your child’s education plan on a solid financial foundation.
Growth with Flexibility
We will set objectives for your portfolio to target a competitive rate of return. Your plan will be adaptable to incorporate new investment opportunities as they emerge.
Presenting the Best Options
We will review with you the various options available for building an education financial plan, including custodial accounts, 529 plans, Coverdell ESA, Roth IRA, tax benefits like lifetime learning credit, and more.
