Question 5: What if my kid is already a teenager, and I’m just getting started?
Don’t get discouraged. Just by being intentional with your money from this point on will pay off. But there will be some suggested or recommended strategy to move forward with your kids college.
If you have five years or less before your teen starts college, you need to take a savings, rather than investing approach. Piling up cash in a money market fund instead of using an ESA or 529. Your kid can also help make up the difference by making scholarship hunting his new part-time job.
Stay focused on saving. Don’t panic. Remember, college is about education, not pedigree. And student loans are off-limits.
START SAVING TODAY
Just like investing for retirement, the sooner you start saving for your kids or grandkids college, the more money you’ll have when the time comes. Don’t wait any longer. Unless, you haven’t taken care of steps 1-4 first. Reminder, we need to have 1.) $1,000 in savings. 2.) No debt (not counting mortgage) 3.) Three months of expenses saved in a money market account. 4.) Saving 15% towards retirement.
Once we accomplish those steps we are ready to contribute to your kids college. You ready?
Don’t hesitate to contact Financial Storehouse to get you on a plan that will set up your family for generations to come.
Reference: Financial Peace University pg. 112.