Step 7: Family Planning / College Funding
Does your plan include children? Do you plan to pay for them to go to college or help with future purchases such as their first car, wedding or first house, to name a few? Saving for college and future purchases should come after paying off consumer debt and after funding your own retirement savings.
Education accounts and future purchase accounts to consider
- 529 College Savings Account
- Education Savings Account (ESA Coverdell)
- Uniform Transfer to Minors Act (UTMA)
Purpose for college
“I would like to send my child to college to help them attain the skills for specific or better employment.”
The purpose is skills and opportunity for better employment.
Plan for college
We plan to attend a community college for 2 years, then transfer to state college to complete an undergraduate degree. We will research how much this education will cost and have a plan to fund it without incurring student loan debt. After graduation, plan to work for a few years, then maybe pursue additional higher education or continuing education.
We’re happy to discuss the pros and cons of each account and how they may fit best into your plan.