Saving for My Kid's College

This is our first ever listener question that we’ve addressed on the show – from Mark: “I was wondering about your thoughts on saving for a child’s education. My wife and I both work at colleges (she’s a professor, I’m a counselor) and we’re actually not sure what college will look like in 15 years and what the value proposition will be. Also will our kid(s) even want to go to college? We haven’t made decisions on a 529 or other account but starting to have the discussion. Thanks, fellas!” Mark is asking all the right questions and this was a great excuse for us to cover an important topic.

In this episode we:

  • cover some of the pros/cons of 529 plans
  • discuss how you should prioritize saving for your kid’s college in relation to saving for your own retirement
  • cover some alternative views on college
  • share whether or not we’re planning to save for our own kid’s college

Here’s that great article over at Clark.com on 529 plans, including the states that have the best options. And if you have a senior in high school- it’s never too late (or too early!) to start applying for scholarships and grants: go find that free money at FastWeb.com

Champs de Fraises by Firestone WalkerAt the beginning of this episode we popped open and enjoyed a Champs de Fraises by Firestone Walker, a barrel aged wild ale fermented with strawberries, which you can learn all about on Untappd. A special thanks to our friend Josh for donating this beer and supporting the podcast! If you enjoyed this episode, be sure to subscribe and review us in Apple Podcasts, Castbox, or wherever you get your podcasts!

Cheers!

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  1. Hey guys, here’s what my wife and I are doing. We are putting some nominal amounts into a 529 for our daughter, who is 2. Like you had mentioned, for our next rental property buy, we are going to get a 15 year mortgage, so it will be paid off if/when she goes to university. We will have great options – we will have 15 years of cash flow payments, a paid off asset, appreciation, and the tax benefits. She, at that point, can weigh in on cashing that property out (we will help her see that wouldn’t be the best idea) or use the monthly cashflow for university expenses. For us it makes great sense as we continue to grow our portfolio but with the intention of having that asset help her when she’s ready. Also plan to have her take some ownership in the upkeep and fixing of the property, and use it as a teaching tool. Keep up the great podcast!

  2. Hey, Nate. Thanks for sharing! Sounds like you are taking an “all of the above” mentality which is phenomenal. I am a huge fan of thinking about the cash flow on a specific rental property as a plan for funding future college expenses. And having your daughter take some ownership over the upkeep is a perfect incentive for her to actually work for some of the money you’ll be giving her. I think your strategy is worthwhile for people to consider if they have enough cash flow to be able to dedicate to saving for retirement, investing in real estate, and saving in a tax-advantaged college savings account.

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