Here is an article from the Financial Planning Association on saving for college, especially for young families, from You & Your Family magazine.
“College savings should be part of an overall financial plan,” says FPA member Robert Schmansky, adding that 529 plans and Coverdell Education Savings Accounts can be great college savings tools, but most savings can be accessed in some way for college. For example, the emergency savings and retirement plan contributions you make are strengthening your family’s finances.
Ways to pay for college include loans, work-study, grants and scholarships. Also, you may be on a career path that will enable you to pay some costs out of pocket, he says.
Be flexible. “We can’t know what changes will come to college financing when your newborn starts school,” Schmansky says. “Put together a plan, and revisit it as tax law and your financial picture change.”
For more information: www.fpaforfinancialplanning.org/LifeGoals/SavingforCollege; Planning for the Costs of Higher Education; www.collegeboard.com.
