We see this happen all the time: our clients come to us assuming their parents will help pay for their children’s future college tuition costs and education expenses. They want to work these assumptions into their financial planning, but there’s just one problem.
Private high schools in the Kansas City Area continue to see prices creep higher for the 2019 -2020 school year. The positive news for parents is that cost increases are moderating over previous years. The median increase in the full cost to attend is up 2.81%. This is the lowest in the five years we have been tracking education expenses.
Cost creep is something parents have become accustom to when paying for children’s education. For the upcoming 2018-2019 academic year average costs are exceeding $14,000 to send a child to private high school in Kansas City for the first time. While the headline number may surprise some, prices only rose 3.1% over last year.
529 accounts have been the most common way for parents and families to save for college. Prior to 2018 these accounts could only be used for higher education expenses. The new tax law passed at the end of 2017 allow for 529 accounts to be spent on any approved educational expenses.
2017 was the most popular year for our blog with almost 50,000 people visiting! Our goal is to write articles that our clients and friends find informative around their financial life. We are grateful for our readers and as always if you have suggestions for topics please feel free to email us.
All families have questions about how they should go about paying for college. High income earners may have additional ability or capacity to save for their children’s college, but there are key items to consider when paying for college education.
The Wall Street Journal ran a story that discussed how financial institutions are marketing loans directly to parents to help their kids cope with the rising costs of college.
Grandparents love their grandkids! Once their own needs are looked after many grandparent’s want to help out with their grandchildren’s education.
As we work with our clients through the financial planning process they ask great questions. Frequently, the one account that clients ask the most questions on is 529 accounts.
Parents are well versed with 529 plans as a tool to save for college. One of the most frequently asked questions I get from parents are what other options are available outside of 529 plans. Some parents want to have flexibility to save so this money can be used beyond education.