What To Consider When Planning for College

As a parent, you want your child to get the best education possible, and sometimes that can get difficult once money gets involved. College is expensive — there’s no sugarcoating. Often, finances can be the deciding factor between schools, which is why it’s best to start preparing now. When you’re planning for college, these are a few things you should consider.

Paying for Tuition

Unlike the decades ago, paying for college as you go and graduating in four years isn’t as feasible for everyone as it used to be. If you’re not looking to take out hefty student loans, there are several other methods that can help you pay for tuition.

• Scholarships: There are literally thousands of scholarships your child can apply for that will help with tuition costs.
• Work Study: Plenty of schools offer work study programs that contribute a designated amount to your tuition payments.
• 529 Saving Plans: By starting to put a little away each month when your child is born, you may accumulate enough money to cover a good majority, if not all, of your child’s college tuition by the time he or she is 18.

Living Situation

A good chunk of college expenses is your room and board. This usually comes down to two options.

• Commuting from Home: This is really only an option if you live close to school, and it saves you a decent amount of money in room and board. However, some argue that it takes away from the “college experience.”
• Living at School: This offers you the convenience of close classes and a “truer” college experience, but it comes at a price. From here you’ll have to decide if your child will want to live on or off campus.

Transportation

Will your child have a car to get around in, or will he or she have access to public transportation? Some schools require off-campus internship to graduate, so you’ll have to factor in transportation costs into the college budget.

Social Budget

As much as you’d love your child to only focus on their education, we all know that’s not the reality. They’ll want to go out to dinner with friends, go on weekend adventures, and of course, there’s Spring Break. While you may want to help finance these things, it’s also a good opportunity to teach them financial responsibility.

Planning for college is a lot easier with the help of a financial advisor. American Investment Planners can assist with everything you need from 529 plans to helping with student loans. We are here to make everything as simple as possible. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.