3 Essential Steps for Mothers Worried About College Costs

If you are a mother concerned about affording college for your child, here are three things you need to do right now:

1. Open a 529 College Savings Plan

Start by opening a 529 college savings plan. You can fund this account with $16,000 a year per spouse. If you have the means to do so, you can also take advantage of a one-time super fund option and contribute $80,000 per spouse in the first year. If you do this when your child is born, they’ll be set for college.

2. Plan for Unused Funds

If your child ultimately decides they don’t want to attend college or they don’t spend all that money on tuition, they can now transfer up to $35,000 of those funds into a Roth IRA. Many of my clients hesitated to invest in 529s because of their limitations, but this option alleviates that concern altogether.

3. Encourage Scholarship Searches

Ask and even beg your child to track down scholarships or grants to help pay for their education. These opportunities are often plentiful; they simply require some digging. And you know, deep down, that your child is the brightest in the room—so let them leverage that intellect to find a scholarship or grant that will cover their college costs. Otherwise, they might end up 45 years old with kids, still trying to pay off a sociology degree.

Taking these steps can help ease the financial burden of college. Remember, proactive planning today sets the foundation for your child's educational future!

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