Financial intuition on tuition

As the summer simmers into autumn, students are on the precipice of starting their college experience: spending afternoons on the quad, attending homecoming football games, making terrible decisions because their brains haven't fully developed yet. And as these young adults excitedly ask, "How do I fit in this big, beautiful world?" many of their parents ask, "How the heck are we going to pay for this?"

I can relate. My wife and I have two young ones: the terrifying prospect of an ever-escalating tuition bill has been on our minds since the kids were born. I know all parents would love to cover every education expense for their children and also be able to live their golden years comfortably, but that's not always financially feasible. So what can you do to plan for your kids' college expenses and not end up risking your retirement?

• Start saving early. This is a cliché but it's true: the money you save earliest works hardest for you, for both retirement and education purposes. Compound interest remains undefeated.
• Don't tackle it alone. Oh, the grandparents, aunts, and uncles think your kid is God's gift to planet Earth? Prove it! They have the ability to contribute to a 529 plan and help shoulder the load of sending their cute-as-a-button kin to college.
• Consider time horizons, both yours and your student's. You can't take a loan for retirement, but your child can take one for college. Choosing to withdraw early from your investments to fund college eliminates the ability for those dollars to grow. Even if you intend to help with some or all of your child's education bill, being strategic with student loans and giving your child some skin in the game can provide you with greater financial flexibility.

As always, you should consult with your trusted financial advisor to make sure all this works within your overall financial plan. These tips won't make saying goodbye at the dorm any easier - and they certainly won't guarantee your kid will pass Western Civilization 101 - but they will help ease the pain of writing that first tuition check.

Takeaways

If you want to help with your child's college expenses, plan to save early and often, and be strategic with how it impacts your overall financial plan. It would also help if they could just get a basketball scholarship.

How are you planning for your kids' college costs? Did you take out student loans for school? Why is your alma mater great, and your rival school such a bunch of illiterate Neanderthals? Let me know in the comments!