Children's Education Planning ($34.95)
This is a hard one to get right. I have had two shots at this one and I believe I got the second one almost right. However, I could have done even better with better planning. The important thing is that if you are accumulating any money for your children's education, you are ahead of the game. For my first child I began a savings plan before he was 3 months old. I choose the wrong savings vehicle and by age 18 I was so disappointed when we tallied the accumulation, we had enough money for three semesters, not eight. Poor planning was to blame, I didn't have a target amount, I just started saving, I didn't consider inflation because I didn't know what I was doing. I had great success with my second child. As of this writing he is a senior at Amherst College in Massachusetts and will graduate May, 2016 debt-free.
In this Webinar we will use a financial model to estimate how much is needed for the college education. Some of the imputs to the model are in the chart on the left. We will use a spreadsheet to capture the selections and to project the monthly amount needed to meet the goal.
There is a huge difference between tuitions for a private institution versus a public one. What does your student bring to the table? High SAT scores, athleticism, other skills can reduce the cost of college. Financial aid can have a strong impact on the amount needed as well and should be estimated. Perhaps the most over looked category is the Incidentals, there are books to be purchased, round trips home, formals to attend, pizza and beer expenses and the list is quite long.
As you might guess determining how much is needed can be quite involved. So, we need a tool that is quite flexible and can do all of the necessary calculations including projecting costs 10-15 years from now. That's why we will use a spreadsheet and you will get your own
The next step will be to evaluate several Accumulation Strategies and we will examine at least the following:
- Risks / Reward
- Insurance policies
We will also discuss the cost of waiting or the cost of doing nothing and there is a cost.
I let my kids know at the age of 12 that money was being accumulated for their college education. I reminded them frequently that if they didn't go to college I would have a lot of money to travel and to play golf. Well, that didn't happen.