College Savings Month opens up conversation on financial planning for a higher education, experts urge starting early
DELMARVA- September is National College Savings Month and local financial experts say starting a savings plan early for college can keep you from racking up debt in the future.
According to CNBC, the average family should be investing roughly $300 every month from birth to send your child to a four-year public institution.
Gunn Wealth Management tells us that to do that, families should start developing habits geared towards the goal.
Founder La Mar T. Gunn adds that will look different depending on your households’ current financial standing. “You can look at the cost of a state tuition now, include inflation over the next 15 or so years, then come up with a number,” Gunn said.
“We have to create a vision board for one to get the entire family on board with setting that financial goal, whatever that is. Families also have to take a hard look at their finances.”
Gunn tells 47 ABC some things parents can do to prepare, including opening up 529 savings accounts or even Educational IRAs.
He also suggests looking into unique options like investing in stocks or real estate. “Kind of why I like real estate is because you’re going to have a tenant who’s going to pay rent every single month, so they have a place to live. Those rent payments can then turn into tuition payments,” Gunn said.
“Then I think you give your kids a financial foundation and education which of course they can’t get in college.”
Experts do advise before opening any accounts or other products that you speak with your financial advisor on what’s best for your family’s situation.
We’re told some debt may be inevitable for some but to avoid bad debt. This includes things like those refund checks that stem straight from loan overpayments because those must be paid back.