3 College Planning Considerations for Your Child

I'm Tyler, a former financial advisor and portfolio manager. Now I make financial content with companies like Facet to show you what the future of financial planning looks like.

1. Rising Costs of College

College no longer costs what it did back in the day. We used to pay for textbooks with loose change. Now they finance dorm renovations with hedge funds! The average public school is now around $24,000 per year, and for private schools, you're looking at about $46,780 per year. That’s before you buy them the hoodie at the bookstore that they'll wear exactly twice.

2. Generational Debt

Without planning, these costs don't just create debt; they create generational debt. This is the kind of debt that politely introduces itself to your child at graduation, then follows them home, sleeps on their couch, and eats their leftovers for the next 20 years.

3. Available Options

You have options: 529 plans, UGMA accounts, custodial Roth IRAs. These tools, if used properly, can prevent you or your child from investing a quarter of a million bucks into a degree that may or may not include an elective in medieval pottery.

Conclusion

If you'd like to be fully educated on how to pay for their education without having your child live in your basement until further notice, go to facet.com/tyler and let them help you build a plan.

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