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Parents Are Not Saving for Kids College

Posted by Manuel Fabriquer on Wed, Aug 10, 2011 @ 7:25 AM

I wanted to share this article with you on research of what was discovered about parents saving for college.

http://www.accountingtoday.com/news/Parents-Not-Saving-Childrens-College-Education-59511-1.html&hl=en&geo=us

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 .

Tags: scholarships, Blog, College Funding, money for college, Saving for college

Is a College Planner worth the investment?

Posted by Manuel Fabriquer on Tue, Aug 9, 2011 @ 7:22 AM

I got this question today from a family that was considering my services.

A family comes into my office today for their free consult with me. I went through my general questions about the family and about the families needs. I quickly discovered that they have a major problem with funding the full amount of college. I realized that they have 2 children and only half of the amount for college. I mentioned that something was better than nothing. The bad news is that they would have to sell all of their investments to pay for their children’s educational needs.

I went through my analysis and made the discovery that I can show them how to deduct over $150,000 of educational costs, therefore saving them well over $50,000 in taxes. I also discovered that the student was less than 50 points away from being qualified for a $39,000 scholarship at a private college. The total potential savings for college could be close to $200,000 over the next 8 years of paying for college.

I know I showed them that a small investment in getting expert guidance through this college admissions, and college financial maze is going to be well worth it.

Tags: college consulting, Blog, College Funding, College Admissions, college scholarships