Start the Financial Discussions Early
During a family’s spring break trip where we put on 2100 miles in 8 days, we had a lot of one-on-one time with our children. This trip went through 7 states and had several stops. Two of those stops were colleges. One stop at Berea College in Kentucky was unplanned. The other was at William and Mary in Williamsburg, Virginia, which we all wanted to see because of the historical figures who have attended that University.
The most amazing thing we learned was the free tuition Berea College offers ALL its students! This stood out more than the fact George Washington and Thomas Jefferson walked the grounds of William and Mary. Ok, maybe that was just me and my attention to the costs of colleges that was amazed!
It did spark questions from both our, at the time, 10- and 12-year-old children. They wanted to know how much school costs? Why would one be less than the other? How much would they have to pay? Then there were tangential questions that came with these. We started to talk about inflation. My daughter wanted to know what Thomas Jefferson paid for his tuition and how it compared to today. We also discussed the endowment of $1.3 Billion that Berea College has and uses to keep its tuition free.
They wanted to know this information. We did not force it upon them, and as we answered questions, they absorbed the information! (We did have to use Professor Google a few times) What I learned is that kids are ready for financial discussions at ages earlier than what we typically assume. You also never know what kind of events or activities lead to great conversations! Who knew a random stop in Kentucky would have ended in a discussion about endowments?!?!
Planning for the Future: The Power of 529 Plans
As we discovered during our road trip, kids are ready to learn about finances earlier than we might expect, but it is never too early to start saving for their educational future. And 529 plans are a fantastic way to start! These tax-advantaged savings plans are designed to help families save for future education expenses, like college, trade school, or even K-12 tuition. With the rising costs of education, starting early can make a big difference in reducing the financial burden down the road.
What’s great about 529 plans is that they’re flexible, easy to set up, and offer potential tax benefits. Plus, they grow over time, giving your savings a chance to compound. A 529 plan is a smart tool to include in your family’s financial discussions.
Why wait? National 529 Day is May 29th, the perfect time to start planning for your child’s education and future!
Whether it's about 529 plans and saving for the future, or a second opinion on your current plan, we welcome the opportunity to talk with you. Reach out to us today.