I wanted to share this article with you on research of what was discovered about parents saving for college.
I understand that it’s tough to save for both retirement and college for the average American family. I have kids myself and it’s really a discipline of saving something every month. Things are tough right now with what is happening in the economy and the stock market.
The article mentions that parents plan to do the best they can to pay for college but are hoping that they are going to fund college on scholarships, academic, and sports scholarships.
In my opinion, I think that parents really need to get help with this process. I think that parents are naive about this whole process and how much parents can actually afford for college. I also believe that parents do not understand how much the cost of higher education is going to cost the family. In California, the cost for a UC College is roughly $30,000 per year and the average family will spend at least $120,000 per student. Most families that I see have 2- 3 children, some savings but only enough for one child. Most families have enough for the first child coming into college, but when the next child comes into college there is a massive problem. The problem lies with cash flow and being able to fund college on a monthly basis. Many families have a budget to pay for a portion of college, but the budget definitely is off when the next student enters college. The trick to college funding is how to keep funding retirement without sacrificing and minimizing education for their children.
What to do? Come to one of my upcoming Free College Planning Workshops or attend a conference call. Check out www.collegeplanningabc.com for events .