Planning for your child's education may be something destined to happen down the line, especially if they are still in diapers. But how much time is enough? With student loan debt and forgiveness flooding headlines, at what point do we as parents consider setting aside the few extra dollars we spend on miscellaneous activities such as dining out, shopping, etc., to ensure our kid(s) do not become a statistic in America's society of borrowers?
Graduates are appealing to the government for student loan forgiveness. After graduating with degrees, unable to find jobs in their fields or even positions that pay enough to cover the never-ending student debt, Americans are finding that the false promise of an excellent career post-grad is unlikely. And according to a study conducted by Project Student Debt, the average tab in 2014 was approximately $30,000 for those graduating at public and non-profit colleges, and I cannot fathom the amount of debt for private universities. As tuition rates rise year after year, how will any of our children afford an education and be able to enjoy life in years to come?
My husband works in the investment world and is constantly advising parents on the importance of investing for your family's future. While he was fortunate to have a college fund, my undergraduate schooling was paid via scholarship, and I had to take out a few loans for graduate school. Both of us are without student debt, however, I expressed to him my frustration when repaying the loans. Additionally, with surging college costs and the lack of resources that educate students about student loan debt, graduates' lives are being robbed and they're unable to find satisfying careers to cover the costs of an education. Students avoid phone calls from their loan providers, they utilize forbearance, deferments, attempt to refinance, etc. All of these options don't really make it easier to pay back the debt. The debt is merely postponed in some fashion or another. We made a plan that we believe all parents should consider, in ensuring your child's success and their opportunity to attend college without fear of debt post-grad.
- Go through your bank statements for the last three months. You'll be shocked to see how much money you spend on nonsense. For example: how much are you spending on fast food? Dining out? The club or alcohol and cigarettes, etc.? Shopping? Total it up. Can you cut back on groceries such as unhealthy items? If you're spending $25/month on soda or chips, drink water and just don't buy the oh so delicious but unhealthy snacks. Not only can you invest that extra $25+ for your child's education, you'll lose weight and be healthier physically and mentally for it.
- Find a financial institution to open a 529 College Plan for your child or children.
- Begin auto-investing the extra money into the plan (you can use the same steps for retirement plans).
Education is important, and equipping your children for the future is critical. Don't defer their 529 payment. Gear them with the chance to succeed.
-Leslie Osmond
Photo courtesy of https://s-media-cache-ak0.pinimg.com/originals/2e/fa/d2/2efad22274530da06c2838ac55ed0e19.jpg
No comments:
Post a Comment