Have a senior high school? College application season will soon be upon us. It’s important to get your application in early, as many colleges accept students on a rolling basis.
It’s important to understand what tuition expenses are and the amount of aid you may receive. A good website to use is CollegeBoard.org. This website offers several calculators that can help.
There’s the College Cost Calculator as well as the Expected Family Contribution Calculator (EFC). This calculator will help you estimate how much financial aid you may receive so you have a good idea how much the price of college will be.
The calculator will ask you several questions relating to the parents assets and income and to the assets and income for your child. Also, how many members in the household will be in college at the same time.
So once you are armed with the potential tuition expense and the amount of aid you may receive, you can start to understand what savings you may need to target and to start researching potential ways to borrow money.
This is a good exercise to go through even if your children are very young, as this can be a real eye opener. To the extent you would like to help pay for your child’s education, you will have an idea as to what the expense will be and the amount of financial aid you may receive. Now, you can start a saving plan that works for your family. And you guessed it - the best one available for college savings is a 529 plan.
Date Posted: 06/17/2016 Advice provided in this article is meant for educational purposes only and financial education is important to us. Before making decisions regarding your personal financial situation, please consult an advisor or conduct your own due diligence. If you would like to discuss your Retirement Income Plan with an HCM Wealth Advisor, please give us a call – 513-598-5120. Located in Cincinnati, Ohio, we serve clients in 28 states, and we’d love to help.