Like any goal, the sooner you start saving for a child or grandchild’s education, the easier it is to achieve. But even if tuition bills are closer on the horizon than you care to admit, there are ways to catch-up and help the next generation finance their dreams. Your Janney Financial Advisor can show you how to get started.
Student loan debt is now about $1.7 trillion and is the second largest consumer debt category—trailing only mortgage debt.2 As a parent or grandparent, you want to do as much as you can do to minimize the financial burden your child has to carry as they start their adult journey.
On average, about one-third of a student’s college costs are funded by scholarships and aid, another one-third comes from parent income and savings, and the final one-third will be in student loans.
Consider using a 529 Plan to tax-efficiently save for your children or grandchildren’s K-12 education costs.
From birthday money when they’re young to income from part-time high school jobs, consider offering to match your child’s college savings fund.
Be careful not to focus so much on education saving that you end up derailing your own retirement plan.
1U.S. News & World Report, September 13, 2021
2Forbes, Student Loan Debt Statistics in 2021
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