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Financing Children's
Education
With the proper planning, most families can find a way
to afford higher education.
You should not try to implement a quick fix to
financing a college education. This only results in
straddling you or your children with the burden of
unnecessary debt. The average senior graduates
college with over $19,000 in debt. In fact, nearly
8% of graduating seniors carried student loans of
$40,000 or more. This situation often spills over
into unwise spending habits and results in throwing
you or your children into a downward spiral of debt
mis-consumption. In fact, a recent study discovered
that Americans lose over $287,000 throughout their
lifetime through debt mis-consumption.
This means simply that there
are better ways to finance things such as college
expenses if we only take the time to develop and
implement a viable financial plan of action. CMPS
professionals help you implement these three proven
steps to help you finance your children's college
education:
- Develop an Education
Funding Plan of Action:
- The best way to
approach education funding is by
re-examining your spending habits and the
way your monthly cash flow works. This
doesn't necessarily mean that you need to
spend less or earn more. It just means that
you need to spend your monthly cash flow
differently. You see, most people who want
to finance a college education can do so if
they just manage their cash flow
differently.
- For example, instead
of being forced to take out student loans
and financial aid, you could start planning
for these expenses by establishing an
education savings plan such as a 529 plan or
other strategy. Even if you missed the
opportunity to start early, CMPS
professionals help you establish a viable
plan to re-allocate your monthly cash flow
and change your spending habits. This cash
flow plan will result in your being
financially able to pay cash for your
children's education.
- Implement the Plan of
Action:
- There is a reason that
professional athletes have coaches. No
matter how good the athlete is, the coach
can help keep them accountable in
identifying weak spots and improving their
performance. You can also benefit by having
a team of "financial coaches". CMPS
professionals are able to "coach" you in
implementing your education funding plan.
CMPS professionals also work in a team
environment with CPAs, CFPs, attorneys and
other financial professionals in order to
help you better achieve this and other goals
in your life.
- Review and Modify the
Plan of Action:
- We all experience
changes in our lives that involve our
income, career, family, health, lifestyle,
etc. CMPS professionals help you review and
make modifications to your education funding
plan as changes arise in your personal and
financial situation. Additionally, there may
be new types of mortgage planning products
and services that could help you enhance
your education funding plan. The plan review
and modification is often referred to as an
"Equity Management Review", or an "Annual
Mortgage Review."
Click below to download the free report that
illustrates some of the mortgage, cash flow and home
equity planning strategies to better help you
prepare for education funding:
 How
to Safely Manage Home Equity
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