Planning for College Expenses

One of the biggest expenses that today’s parents face is paying for or at least helping to pay for college for their children. If you have a child, then you should know that it’s never too early to start planning and saving for a college education. Furthermore, even if your child is older and you’ve neglected planning like you should, doing some planning, even if it’s a bit last minute is still worthwhile.   

Before Your Child Starts School….

If your child has yet to enter kindergarten, you might think that it’s too soon to start planning for college, but honestly, as mentioned above, there is no such thing as “too soon,” especially when you consider the ever-rising cost of a college education in America.

While your child is still very young, you don’t have to put too much pressure on yourself to save large amounts, but it’s still smart to start socking away small amounts here and there, where you can. You’d be surprised at just how much these smaller, early contributions can add up over time.

When Your Child is in Elementary School….

Once your child enters elementary school, you will hopefully have established a good habit of putting small amounts into a college savings fund when you can. Keep this habit going! And, speaking of habits, elementary age children are at the perfect point for instilling good financial habits into them.

Teach your little ones about money management and good debt and bad debt so that, hopefully, when they do enter the college world, they won’t make bad financial choices that will haunt them for the entirety of their adult lives.

When Your Child is in Middle School….

Once your child hits middle school or junior high age, it’s time to really buckle down and start getting even more serious about planning for his or her education. Take the time to research the average cost of local colleges and/or schools that your child is likely to attend, such as your alma mater. The more realistic you are about what college costs, the more likely it is that you will save realistic amounts.

This is also a good time to get your child involved in sports, charity work, and other extracurricular activities that will look good on a resume and potentially lead to easier access to scholarships once it comes time to apply for college.

When Your Child is in High School

Finally, when your child hits high school, you have no choice but to start preparing for college expenses in a very realistic and immediate way. Figure out when your child needs to fill out the FAFSA, a federal application for financial aid, and make sure you meet all deadlines as required.

Furthermore, extensively research scholarships and grants with your child and apply for any and every source of “free college money” for which he or she is eligible.

If you can follow these tips and make saving a habit, you should have a much easier time paying for your child’s education when the time comes.

Saving for College Costs

Most parents hope that, one day, their children will go off to college, get a good education, and ultimately have success in life. A college education, however, costs money, which is why families are advised to start saving for college costs early on. And, while saving for college might seem like something only “rich” people are able to do, a recent study actually found that the vast majority- around 72% of families in the United States- of people with children do have some savings stashed

away for college. That means that, if you’re not yet saving for your child’s education, it’s time to start!

If you have children, no matter their age, and you haven’t started saving for their future educations, or if you haven’t saved as much as you would like, it’s time to sit down with a financial adviser. These professionals can take a look at your finances and help you to start saving for your child’s college career in a realistic, manageable way.

Even if you think you don’t have enough money to save for your child’s college fund, remember, every little bit you can stash away helps! Also, don’t fall into the trap of thinking that your child is “too young” and that you’ll worry about college costs “later.” More often than not, “later” turns into “too late,” and, before you know it, your child is ready to start college, and you’re scrambling to find a way to pay for it.

If your child is close to college age and you have some catching up to do, it is still worth seeing a financial adviser since they can provide you with some potential strategies to get funds quickly and send your son or daughter off to college.

Being a parent and paying or helping to pay for college isn’t easy, but it is possible, especially with some planning on your part and the help of a knowledgeable financial adviser.

The Power of Education Planning and Scholarships

It’s no secret that college is expensive. Parents of college students or soon-to-be college students complain about the costs all the time, and they’re not exaggerating. The College Board reports that the average cost of college ranges from $9,139 all the way up to $32,231 per year, depending on the type of college a student chooses and residency status. No matter how you slice it, that’s pretty darn expensive!

Fortunately, many parents are relieved to find that, through scholarships, they can eliminate some or even all of the financial burden of a college education; here’s how.

Tip #1: Get an Early Start

Scholarships don’t just happen. They are given to the most worthy and promising students, so focusing on making your child into one of those students, as early as possible, is key. For best results, place your children in all the opportunity-providing programs possible, such as athletic programs, the gifted track or honors program at school, and more. Get them invested in volunteering and community service too, and you’ll find that not only do you get a more well-rounded kid, but you also get a kid with a much bigger chance of securing scholarships.  

Tip #2: Apply Often

There’s a lot of competition for even the smallest scholarships, so you can’t just have your child apply for a handful of scholarships here and there and expect great results. Instead, encourage your budding student to apply for every opportunity you come across, and search for opportunities often! Obviously, high dollar scholarships are best, but truly, any amount helps when you’re trying to pay for something so expensive, so apply away.

Tip #3: Seek Financial Help

While scholarships are awesome and plentiful, there’s a good chance that, no matter how hard you work, every dime of college isn’t going to be paid for via scholarships. As such, you need some kind of plan in place as to how you plan to pay for what’s left. The best way to get that plan is to meet with a skilled financial advisor who can set you up with a realistic plan to fill in the gap the scholarships leave behind and make the education dream (and a bright future) possible for your child. #Naperville #EducationPlanning

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College Financial Planning

Individuals who want to attend college but cannot afford the costs outright must find alternative funding through various types of financial aid. Many factors affect eligibility for federal financial aid; therefore, all students should apply for financial aid every year even if they think they do not otherwise qualify. 

FAFSA. The Free Application for Federal Student Aid (FAFSA) is the first step in the financial aid process. Students use the FAFSA to apply for federal student aid, such as grants, loans, and work-study. The FAFSA must be submitted for each year the student wants financial aid.

Income tax return. If the student (or parents) needs to file a 2013 income tax return with the IRS, it is recommended that it is completed before filling out the FAFSA.

Expected Family Contribution. The questions on the FAFSA are required to calculate the student’s Expected Family Contribution (EFC). The EFC measures the student’s family’s financial strength and is used to determine the student’s eligibility for federal student aid. The EFC is split between an expected amount contributed from the student (usually more) and an expected amount being contributed from the parents.

Student Aid Report. A student’s EFC will be listed on their Student Aid Report (SAR). The SAR summarizes the information submitted on the student’s FAFSA.

Financial need. Financial need is the difference between the EFC and the college’s cost of attendance (which can include living expenses), as determined by the college. The college will use the student’s EFC to prepare a financial aid package to help meet financial need.

Need analysis formula. To determine financial need, a need analysis formula measures the parents’ and student’s assets and income. Assets are measured as follows:

•    Assets in the student’s name are assessed at a maxi-mum rate of 20%, whereas parents’ assets are assessed at a maximum rate of 5.64%.

•    The assets of other children are not considered by the need analysis formula.

•    Specific types of property (automobiles, computers, furniture, books, clothing and school supplies, boats, and appliances) do not count as assets.

•    Retirement funds and pensions are generally not considered assets. 

•    Annuities and life insurance policies are generally not considered assets.

•    Small businesses owned and controlled by the stu-dent’s family are excluded as assets. However, a partnership where the family owns 50% of the business is not excluded.

•    Consumer debt (such as a credit card balance) is not counted against assets and income.

•    Only debt secured by property (mortgage on home or business loan for equipment) is counted against assets and income. 

Need more education planning advice?  Call Us!

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Clinton and Bush voice College Concerns

Hillary Rodham Clinton and Jeb Bush both have a high chance of being candidates in the next presidential election. And, though they come from different political parties, they both cared enough about education and the young people who cannot access it to speak at a higher education conference recently held in Dallas.

Both politicians voiced concern that college costs in the United States are just too great for most students to bear. They also expressed fear that many students will not get the educations they deserve. And, while their concern is nice, it can’t change the still-rising costs of college tuitions, at least not right away.   

Hopefully, people like Clinton and Bush will one day bring about a change and make college more affordable for all people. But, until then, the only thing you can do is to start education planning and saving as soon as possible.

For help with education planning—and remember, it’s never too early to start—visit the friendly experts at Platinum Financial Associates of Naperville.

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Saving for Future Fun

When it comes to saving money, everyone knows that it’s necessary to save for important things, such as education planning for your children. And, while you definitely should be saving for things you’re your children’s education and your own retirement, it’s also important to remember that life is short and that it’s okay to sometimes invest some of your savings in fun things, in things you just plain want.

There is really nothing wrong with taking some of the money you’ve put aside and splurging on a fancy dinner or even a nice vacation; you just have to make sure that you do your splurging in a smart way. When you have enough money put aside for important matters and are balancing the rest of your money correctly, a little (or even a big!) splurge every now and then isn’t going to hurt you.

If you want to be able to spend money on fun things every once in a while without guilt, fear, or future consequences, then hire someone to help you manage your money correctly, such as one of the financial experts at Platinum Financial Associates. These financial planners can make sure you’ve got education planning and everything else of importance taken care of and that you still have a little left over to invest in enjoying life, which is the most important investment of all when you really think about it.

Easy Ways to Work Toward Your Financial Goals

If you’re like most people in America, then you have financial goals that you are working toward. Those goals might include things like education planning for your children or saving up for your own future retirement. Whatever your goals may be, visiting with a financial planning service can help to ensure you reach them and that you reach them as quickly as possible.

Things like education planning and retirement planning become a whole lot easier when you’ve developed a plan that specifies how much you plan to save and how often and when you know exactly what the end result of your plan will be. Don’t just crawl blindly toward your goals; set up a surefire plan to reach them by contacting Platinum Financial Services of Naperville. Once you’ve got your plan in place and are carefully following its steps, you’ll quickly see your dreams turn into realities right before your eyes, and nothing is more rewarding than that!

If you have one or more children, then you absolutely need to be planning for their future educations, and you need to be doing it right now. Even if your children aren’t of school-age yet, it’s wise to start putting money away for their futures, especially when you consider the fact that tuition prices are higher than ever before and that they are showing no signs of slowing down; instead, they are continually on the rise. The College Board lists the average cost of tuition and fees for American colleges for the 2012-2013 school year as a whopping $8,655. And that figure only applies to in-state students at public colleges; if you can only afford to pay for your child to go to an in-state public institution, then you are severely limiting his or her options. Unfortunately, though, the costs of private colleges and of public colleges for out-of-state students are rather exorbitant. The average cost of a private college for the 2012-2013 school year was $29,056, and for out-of-state students at public colleges, the cost was $21,06. Obviously, with education costs this high, it’s imperative to start education planning for your children as soon as you possibly can. Figuring out how much to save and how to save it, though, can be difficult, making it advisable to seek education planning assistance from a Naperville financial expert. For those in the Naperville area, Platinum Financial Associates is the place to turn for advice when it comes to planning your child’s education.

If you have one or more children, then you absolutely need to be planning for their future educations, and you need to be doing it right now. Even if your children aren’t of school-age yet, it’s wise to start putting money away for their futures, especially when you consider the fact that tuition prices are higher than ever before and that they are showing no signs of slowing down; instead, they are continually on the rise.

The College Board lists the average cost of tuition and fees for American colleges for the 2012-2013 school year as a whopping $8,655. And that figure only applies to in-state students at public colleges; if you can only afford to pay for your child to go to an in-state public institution, then you are severely limiting his or her options. Unfortunately, though, the costs of private colleges and of public colleges for out-of-state students are rather exorbitant. The average cost of a private college for the 2012-2013 school year was $29,056, and for out-of-state students at public colleges, the cost was $21,06.

Obviously, with education costs this high, it’s imperative to start education planning for your children as soon as you possibly can. Figuring out how much to save and how to save it, though, can be difficult, making it advisable to seek education planning assistance from a Naperville financial expert. For those in the Naperville area, Platinum Financial Associates is the place to turn for advice when it comes to planning your child’s education.

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Should Personal Finance Be Taught in Schools?

Bank of America was curious as to whether or not the average American felt that personal finance was important enough to be taught in schools. In an effort to satisfy its curiosity, the bank commissioned and sponsored a poll by Harris Interactive which questioned adults on whether or not they felt personal finance classes should be taught in high schools. Amazingly, 99% of adults questioned said that yes, personal finance should be taught in schools.

Despite the large number of adults who feel that teaching personal finance is important and despite the ever growing costs involved in education planning, there are currently only four states that require personal finance to be taught in the public high school system. Hopefully, this poll will help to change that!

Even though students in Illinois may not be required to take a personal finance class in order to graduate, you can still set a good example for your teen and prepare for his or her future by getting help with educational planning at Platinum Financial Associates of Naperville.

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Springboard Kids to Success with Education

Are you a parent? If so, then you undoubtedly want the very best for your children. Providing your children with the best means giving them every possible opportunity you can, and there’s no better or more important opportunity than that of a higher education. Education, though, can be expensive. Many parents think that they don’t have to save for their children’s college funds, that they can just send them to an affordable public university. These days, though, even public universities aren’t all that affordable. The University of Illinois at Urbana-Champaign is public, but it costs a whopping $14,960 per year on average. Obviously, with figures like that, it’s important to start working with a Naperville education planning firm as soon as possible.

While all parents are encouraged to work with a Naperville education planning service, such as Platinum Financial Associates, Inc., doing so is particularly important for parents who plan to send their children to private colleges and universities. The University of Chicago is a private school that boasts a tuition of $45,609 per year. And even some community colleges, such as Lincoln College ($17,500 per year!) can be expensive!