Like many things in life, saving for college is one of those things we all know we’re supposed to do, yet even the most responsible of us regularly come up short. The difference in this case is the added layer of frequent bad information that can discourage parents from making reasonable efforts, all of which leads to statements and questions like:
I heard that there’s lots of financial aid and scholarships available.
If I save money, won’t I get less financial aid?
But my student might get an athletic scholarship.
I heard that you can get in-state college tuition rates once you live in that state for a few years.
What if my student declares independence? Won’t she get more financial aid?
I could dig into answers/rebuttals to those and other questions, but the reality is that they all lead to the same conclusion: Saving is the very best college financing strategy (followed closely by applying to the right colleges).
The more you manage to set aside to pay for college, the more control you’ll have over your financial destiny, and the less you’ll need to rely on financial aid to make up the difference. Financial aid officers are also more likely to look favorably on a family who’s made a reasonable effort to save for their kids’ education than they are on those who have lived beyond their means and are now expecting colleges to make up the difference. And given that not all financial aid is free money—much of it can be loans that need to be paid back with interest—it’s cheaper to save than it is to borrow. Like flossing your teeth, exercising, and eating right, we can look for evidence that it’s not as important as we’ve heard, but the facts always tell us differently.
Consider opening a 529 savings plan and having regular amounts automatically deducted from your paycheck. Look for ways to cut your expenses and redirect that money to your college savings. Save what you can, starting as early as you can, but don’t get discouraged if you’re late to the saving party. You won’t be alone, and every little bit will help.
Even if you later regret not saving more, you won’t regret the effort to save what you did manage to set aside.