Articles

by A. Scott White, CFP^®, ChFC, CLU
President, Scott White Advisors

September signals change—the end of summer, beginning of fall and the official College Savings Month. What could be more appropriate than focusing your attention on the educational futures of your beneficiaries—whether they be your children, grandchildren or other relatives? Since 2003 when Congress passed a resolution declaring September College Savings Month, 40 states have joined the movement, including the College Savings Plans Network.

According to the College Board’s latest report on the total average costs* of a college education, the price continues to rise. Below are the report’s highlights:

•$19,388 for four-year public colleges for in-state students (total average cost increase of 5.9% from last year).

•$30,388 for four-year public colleges for out-of-state students (total average cost increase of 6.0% from last year).

•$39,028 for four-year private colleges (total average cost increase of 4.3% from last year).

*Total average cost: tuition and fees, room and board, books and supplies, transportation, and a small amount for miscellaneous expenses.

Fortunately, you have a number of resources to help you plan for a college education without breaking the bank or burdening your children with high debt. Begin with assessing your financial situation—either with a Certified Financial Planner™ or using the plethora of resources on the Internet. Only by determining what you can afford to pay (and are willing to pay) can you start planning and saving. If your children are old enough (middle-school age), discuss the options openly with them once you have all the facts. After all, it’s their future too.

Keep in mind, there are more options available than qualified college savings plans (529s) and student loans. For example, prepaying tuition—either at a private or public institution—can have a host of benefits for your beneficiary and your financial situation. Consulting with a financial professional can help you understand all your options and create a plan that works for you and your beneficiaries.

By using the month of September to reflect and plan on saving for college, you can look forward to the upcoming changes in life with an easier mind.

Scott White is past president of the Financial Planning Association Southwest Florida Chapter. He is past president of the Southwest Florida Chapter of the American Society of Financial Service Professionals, past president of the Lee County Estate Planning Council, and founding president of the Planned Giving Council of Lee County. For more information, visit www.scottwhiteadvisors.com or call (239) 936-6300. Scott White Advisors is an independent Registered Investment Advisor and is located at 1510 Royal Palm Square Boulevard, Fort Myers, Florida 33919. Securities offered through Raymond James Financial Services, Inc., member, FINRA/SIPC.