How to Start Investing in Your Children’s Future

How to Start Investing in Your Children’s Future

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Riddled with both academic and financial challenges, the pathway to a college education is arduous. Here are some tips for parents who wish to help raise the necessary funds to make the transition to a university less financially straining.

The pursuit of higher education is the goal of many American families who have children working their way through the school system. Regardless of where a child falls in the educational system, Kindergarten to high school, parents want the best for them, and they wish for a world of opportunity to lay at their feet upon graduation. However, when it comes to postsecondary school education, families need to start saving when their children are very young to ensure they have adequate funds to provide them with a full university experience. In fact, according to Forbes in early 2015, “The national average cost of attending a four-year public college is over $28,000 per year, and the average cost of attending a four-year private college is now over $59,000.” and the price continually increases. Using these numbers, the average student can expect to pay between $112,000 to $236,000 for a four-year college. How is the average American parent supposed to finance their child’s education when, according to the US Census, the median household income is $57,617 a year?

Even with all the glaring hurdles in front of you, do not fret because there are several steps you can take to help you optimize your position to be of financial assistance once your child walks across the stage in their cap and gown at their high school graduation. Here are just a few to get you started:

1. Plan ahead. Anything worth pursuing takes a healthy dose of planning, and it is no different when it comes to saving for a future endeavor. Look at your total expenditures and income and then allocate a designated amount to set aside for your child’s college tuition. If you are newly married or even dating but you plan on having children, you can be proactive and start saving for your kid’s education now.
2. Start early. Similar to the advice you receive in regards to retirement investments, it is never too early or too late to begin the college-saving process; however, the earlier the better. Set aside an amount which fits within your budget but be prepared to be nimble enough throughout the process to adjust the amount when your salary and expenditures dictate a change.
3. Do your research. There are many viable investment and saving options to help get you to your end goal of paying for college tuition. One of the most popular is a 529 plan. According to the SEC, “A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs.” There are two different types of 529 plans; college saving plans and prepaid tuition plans. Each state offers at least one of these two options. As an investor, you are not bound to buy into the program provided by your state-of-residence. Therefore if a 529 plan is the direction in which you want to go, then do your research to find the selection which best fits the needs of you, your family, and your child.
4. Be consistent. Consistency is critical when you pursue any objective. Train yourself to set aside a portion of your income each paycheck, each quarter, each year, or whenever you deem appropriate when you put your plan into action. Hold yourself accountable along the journey and make sure you maintain your commitment, so you start accumulating significant savings throughout the years.
5. Ask for help. Investments can be confusing and overwhelming, but you do not need to navigate the journey alone. Seek the support and guidance of an investment professional who can adequately explain your options and provide insight into the contributions your making into your child’s educational future.  

The wealth management firm of Benedetti, Gucer & Associates (BGA) is one of the South’s outstanding financial advisor firms. The Atlanta-based Registered Investment Advisory firm is poised to help their clients with understanding their economic objectives, be it saving for a university experience for their kids or mapping out their retirement. Benedetti, Gucer & Associates has years of hard-won expertise on which they can rely. Paired with their gritty tenacity and unwavering integrity, they have won the trust of their clients in a world wary of the financial service industry.

The financial professionals at Benedetti, Gucer & Associates take pride in their ability to develop customer relationships based on their experience, diligent work ethic, and professionalism.

If it is your goal to help your child achieve a postsecondary education at one of America’s exceptional universities, then schedule an appointment today with Benedetti, Gucer & Associates to see how they can point you in the right direction.

DISCLOSURES

The views expressed represent the opinions of Benedetti, Gucer & Associates and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person.

Additional information, including management fees and expenses, is provided on Benedetti, Gucer & Associates’ Form ADV Part 2, which is available upon request.

The use of the term “RIA” does not imply a certain level of skill or training.