Making Margin
Saving for College: A Primer
Episode Summary
Today’s topic is all about saving for college. Saving for college vs. competing priorities Is college going to look like it does now when our kids are old enough to go? What are the best vehicles to use to save for college? How can they be utilized most effectively?
Episode Notes
Welcome to the Making Margin podcast! Greenway’s team is here to discuss common financial mistakes and to help you navigate them.
Meet the voices behind Making Margin:
Special Guest: Allen Starrett
Today’s topic is all about saving for college.
- College is expensive, and saving for it can be a big challenge, especially as it competes with other priorities
- According to US News, the average four year in-state college costs about $10000 year, just for tuition, and the average private college costs almost $37000per year
- They point out multiple times on their site that most students pay less than the sticker prices, thanks to financial aid and scholarships
- While an institution like Yale University in Connecticut, for instance, advertises a sticker price of more than $55,000 for tuition and fees in 2019-2020, the average cost to students last year after receiving need-based grants was around $17,000.
- And, college graduates earn more over their lifetime. A recent study from Georgetown University found that, on average, college graduates earn $1 million more in earnings over their lifetime. Another recent study by the Pew Research Center found that the median yearly income gap between high school and college graduates is around $17,500.
Discussion Topics:
- Saving for college vs. competing priorities
- Is college going to look like it does now when our kids are old enough to go?
- What are the best vehicles to use to save for college? How can they be utilized most effectively?
Take Away: Having a plan, for whatever you decide to do, is key.
Resources:
- Here is a good recap of ownership of a 529 by a grandparent and all the implications.