Parenting is a tough job that doesn’t end once they turn 18. A parent never stops worrying about their child’s mental and physical well-being, and most want their children to be financially better off than they were. Preventing student loan debt is a great way to help your child get ahead in life. More than half of today’s college students are forced to apply for student loans and will graduate in debt. By preventing your child from being burdened by large high-interest loan payments, you are enabling them to use their money for their present and future and not their past.
At Alloy Wealth Management, we help clients navigate complicated financial planning decisions every day. Qualified tuition programs like the 529 plan can help you save towards education costs in a tax-advantaged way, but there are other ways to save as well. We’d be happy to answer any questions you have about the best approach to college savings. The earlier you begin saving towards your child’s higher education, the better.
While many parents of means believe they have a moral responsibility to pay for their child’s college education in-full, there is something to be said for making a child work to pay their own way in life. Teaching your child about money management and saving and investing at a young age can empower them to become financially independent. When they invest in their own education and future, it’s likely they’ll take going to college more seriously. If nothing else, make it your child’s responsibility to pay for their books so they can learn the value of a dollar.
Make sure your son or daughter doesn’t have an alternative dream for their future. That last thing you want to do is pay for a degree they don’t want and won’t use. They may want to start a business, join the military, or learn a trade and any money you saved towards their education can be used to help them in other ways. If you have questions about financial planning to prevent student loan debt or saving and investing for retirement, call Alloy Wealth at 800-689-3935.