Is a private grade school a possibility for your child? What about a private college? When it comes to your child’s academic future, it’s important to start asking these types of questions early. In today’s post, AOG Wealth Management shares three financial planning mistakes to avoid when saving for your child’s education expenses.
1. Not Saving Early Enough
The earlier you start saving for your child’s education, the better, as any wealth management advisor will tell you. The cost of college tuition continues to rise each year, so it’s important to begin preparing for the expense when your child is very young. If you begin early, you can put away smaller amounts vs. if you start saving later in your child’s life.
2. Being Too Conservative
Parents are understandably anxious about the money they’re saving for their children’s education, but playing it too safe can backfire. Rather than putting your investment in an extremely low-risk account like a savings or money market account, consider a college savings plan with an age-based option. Choosing a more aggressive growth investment can help you reach your investment goals when you have shorter time periods to achieve those goals.
3. Not Seeking Professional Help
Saving for your child’s education can take a toll on your funds and even put a strain on your lifestyle. Determining how much to save and where to invest your money can be confusing and stressful for many parents who aren’t experienced investors. A wealth management advisor can help you make choices that are smart and practical for you and your family. As your professional financial advisor, we can help you get started put you on the right path to achieve your financial goals.
Give us a call at (866) 993-0203 for more information on our services. AOG Wealth Management offers professional financial planning services throughout Washington, DC.
The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.