It is graduation season – quite an exciting time for many families – and depending on how you planned to pay for school it could be a relief or a financial burden. I just read an article where a couple accumulated around $500,000 in debt to pay for their children’s college education – that’s cray-cray! I also hear a lot of co-workers talking about how much their kid’s college tuition cost and how they are broke because of it.
I understand we want the best for our children, but going into debt for them might not be the smartest move. There are plenty of ways our children can obtain a college education without having to put a dent in our savings – we just have to plan ahead.
According to a recent study conducted by Sallie Mae and Ipsos – How America Saves for College – only about 50% of families with children under the age of 18 are saving for college. The study also shows that out of those who are saving, about 75% are not utilizing the best options when saving for college.