Education Funding

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.

 

Today, attendance at an average four-year private university costs $39,723 in tuition and fees per year ($22,953 for an out-of-state public college) .1

Things to consider

Student loan debt is now about $1.757 trillion.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.

 

A pie chart with three sections

Plan in thirds

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.

A calculator

Take advantage of a 529 Plan from K through college

Consider using a 529 Plan to tax-efficiently save for your children or grandchildren’s K-12 education costs.

A person talks with three other people

Encourage your children to save

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.

A hot air balloon

Think retirement first

Be careful not to focus so much on education saving that you end up derailing your own retirement plan.

1 U.S. News & World Report, September, 2022
2 Education Data Initiative, April 2023

What to ask your Janney Financial Advisor

  • What options do I have to save/invest for my child’s education?
  • Will money that I save in a 529 Plan account impact my child’s eligibility for financial aid?
  • Given my current financial situation, what’s the optimal balance between retirement and college savings?
  • How can I figure out how much I’ll need to save each month to meet my educational savings goals?

 

 

 

 

Explore our Education Savings calculator, available in Online Access



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