This month, the education community celebrates Financial Aid Awareness Month often by sharing information with students and families about access to federal, state, and institutional student aid. College and higher education costs can sometimes be steep costs to families. However, a college degree can be important in providing opportunities in young people’s careers, so it sometimes falls on the whole family to pay for the important cost of education.
Financial aid is a crucial piece of the college planning puzzle. For those who seek a college degree but face difficulties in paying for it, financial aid is their ticket to career success. It opens their options for what level and type of education they can receive, and in some cases, is a necessity for economic mobility.
Regardless, higher education will likely cost you something whether you receive financial aid or not. The good news is that there are savings plans available for you, just like your retirement or health savings accounts, that can help you save for a kid’s or grandkid’s college.
The 529 savings plan is a specific type of savings and investment account that is tax-advantaged for qualified education spending. It covers items such as tuition payments as well as other expenses associated with academic activities, such as the purchase of school supplies. But just like an IRA or 401(k), starting the saving process earlier is often advantageous.
The financial aid filing process happens when applying for college, but the college savings process happens much sooner. That’s why it’s crucial for families to include college and education planning in their financial plan, in addition to seeking advice and guidance on the financial aid administrative process from qualified education sources and professionals.
When it comes to education saving and spending, including a financial advisor in your family’s college planning process can help you optimize the college spending process so that you put yourself and your family in the best position to provide quality educational opportunities to your family while keeping your financial and retirement goals and needs intact. To get started with one of our financial advisors, contact us at (603) 261-3736.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.