It is hard to believe that summer vacation will soon be over and it will be back-to-school time. Saving for college has always been a concern for most parents. However, as more individuals change careers or wish to upgrade their skills, preparing for education has no longer become an issue for parents alone.
Who is going to college?
More high school graduates are going to college today, says the American Association of Community Colleges. The average enrollment tops at 43 percent for ages 21 or younger.
College is no longer for just the 18 to 24 year olds. Re-entry or adult students are ages ranging from 25 to 69 at many colleges and universities, says the American Association of Community Colleges. Re-entry students are often female, but men are returning to college in record numbers to update professional skills and further career advancement. Some may never have attended college or started college and then stopped because of personal, financial or other reasons. Many have spent time in the workforce, the military or raising a family and want to go back to school to fulfill lifelong dreams or potential. Some are retired while others are single parents looking to achieve a better life.
What should you do?
Start saving today. With education costs rising at an average of 6 percent per year, a four-year public university education could cost well over $100,000 and private school could cost over $300,000. These are big numbers, which is why it is important for many to begin a savings strategy immediately. The cost of waiting can be substantial to your family.
Get advice as early as possible.
The increasing cost of higher education has made education planning an important part of personal financial planning. A financial advisor can help navigate you between college savings for children, college savings for yourself and your retirement. I believe that it is very important not to ignore retirement planning to meet the high cost of education. You can always borrow money for college, but you can’t borrow for a 30-year retirement.
For more information, please contact Rebecca Robins, CFP™, CPA at 661-222-2331. CA Insurance # 0D75745. Securities offered through Associated Securities Corp., Member: NASD/SIPC. Advisory Services offered through Associated Planners Investment Advisory, Inc., a Registered Investment Advisor.