Life Kit How To Save For Your Kid's College Education
Sep 11, 2019
Join Michelle Singletary, a personal finance author and columnist for The Washington Post, as she dives into the essential strategies for saving for your child's college education. Discover the magic of 529 plans for tax-free growth and why income matters more than savings when it comes to financial aid. Learn how automatic transfers can pave the way to financial stability, and hear inspiring stories of parents who successfully achieved a debt-free college experience. Get practical tips to make your college savings journey more manageable!
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Valerie's Savings Struggle
- Listener Valerie Finnemeyer found college savings calculators suggested unrealistic amounts.
- She and her husband, highly educated but with student loan debt, found saving difficult in Boston's expensive housing market.
Prioritize College Savings
- Save as much as possible for college; it won't significantly impact financial aid eligibility.
- Income affects aid eligibility 20x more than savings, so prioritize saving.
Financial Aid Calculation
- Colleges prioritize income over savings when determining financial aid.
- Saving $1,000 might only increase expected contribution by $56, making saving worthwhile.