Don’t Know How to Start Saving for College? A Financial Professional Can Help | Scholar's Edge

Don’t Know How to Start Saving for College?
A Financial Professional Can Help

Many parents want to save for college – but could use a helping hand

illustration college 529 plan investigation calendar and calculator

While most parents want to help pay for their children’s college education, it can certainly be overwhelming. Where do you start? What is the best way to save? How much do you need to save each month?

Fortunately, a financial professional can help take the stress and uncertainty out of funding your children’s college education. 

Financial professionals can help parents avoid making common savings mistakes, including: not having a college funding plan, missing potentially beneficial state tax deductions, or investing in a plan with high program expenses.3

illustration of uncertainty saving for college

50% of parents admit they don't know the best savings options for college and express uncertainty regarding exactly how much to save each month.1

illustration of folders in college savings planning

Only 56% of parents indicate they have a financial plan in place to reach college savings goals. 1

illustration of putting money in a piggy bank for college

The average parent plans to pay approximately 62% of their child’s college costs, and seven in ten is actively saving for college.2

Financial professionals can help you reach your college savings goals

Once you select a plan, your financial professional can assist you in making the investment selection that best meets your needs. A financial professional can help determine whether to use the plan offered by your home state, if available, and if an in-state tax benefit is worthwhile. 4

There are 30 financial professional-sold 529 plans available, such as the Scholar’s Edge 529 Plan offered by the Education Trust Board of New Mexico. These plans must be purchased through a licensed financial professional.4

illustration of financial advisor with scholars edge 529 plan

illustration of family saving for college with financial advisor help

86% of parents with a financial professional have started saving for college.1

illustration of financial advisor explaining navigation of college savings

64% of families said their financial professional keeps them on track to meet college savings goals.1

illustration pointing at college majors direction sign

Around 28% of parents would like help determining their child's major and 22% said that their financial professional is already helping.5

Make a college game plan with your financial professional

illustration college 529 plan investigation

Parents may opt to work with a financial professional to select the college savings plan that best fits their needs and help maximize their investments. But financial professionals can assist with much more than that when it comes to college planning.

A financial professional can talk to your child about potential future earnings for careers that interest them and discuss different plans to get there. A financial professional can also help decipher (often confusing) financial aid requirements or assist in finding scholarship opportunities. Financial professionals are becoming actively involved in helping their clients reduce the price of college by helping with scholarship sources and financial aid.5

Financial professional want to make sure their clients get the best return on their investment when it comes to paying for college. That means helping families determine the most appropriate school choice for the student based on tuition cost, choice of major and expected starting salary.5

Sources

1 https://www.fidelity.com/about-fidelity/individual-investing/college-is-no-free-ride
2 https://www.sofi.com/learn/content/percentage-of-parents-paying-for-college/
3 https://www.thinkadvisor.com/2020/02/20/advisors-advice-8-major-collegesavingsmistakes-
clients-make/
4 https://www.savingforcollege.com/article/parents-turn-to-financial-advisors-for-help-with-college-
savings
5 https://www.savingforcollege.com/articles/youre-saying-my-financial-advisor-can-help-me-
plan-for-college-672