With your divorce underway in Maryland, you are beginning to think about your future and how you can provide for your children. One financial obligation in particular, college tuition, may have you looking for effective ways to plan and save.
Knowing your options for optimizing the money you put toward your children’s college education can enable you to make smart financial decisions. Throughout your efforts, encourage your children to contribute a portion of their allowance or income to their forthcoming college expenses.
Determining which of you is to pay for your children’s college education or how to split that task will require you to remove any emotion from the equation. According to RBC Wealth Management, negotiating an agreement means you and your spouse must communicate with each other. Through a level-headed discussion, both of you may successfully decide how to share this important responsibility.
Coordinating planning efforts
There are several options for planning your children’s education. For example, you could start a 529 savings plan that builds interest over time. Encourage your children to apply for scholarships and participate in higher education electives sponsored by their high school or other secondary school. Even if you doubt your child’s eligibility, consider filling out the FAFSA application for federal student aid.
No matter how you choose to proceed with funding your children’s college education, try to coordinate your efforts with your soon-to-be ex. Streamlining your goals along with those of your ex and your children, you should have a stable resource to offer to your children when they begin college. If your children do have a 529 plan, make sure everyone understands the right way to withdraw funds to avoid costly penalties and taxes.