Preventing Student Loan Debt

Parenting is a tough job that doesn’t end once they turn 18. Parents never stop worrying about their child’s mental and physical well-being, and most parents want their children to be financially better off than they were. Without financial planning, there will only be so much you can do to help your child get ahead in life. More than half of today’s college students were forced to apply for student loans and will graduate with on average $35000 in high-interest debt. By using strategy, you can prevent student loan debt from becoming a burden to your child later in life. 

The earlier you begin saving towards your child’s higher education, the better. You certainly don’t want to sacrifice retirement planning to provide for your child’s wants and needs. There are ways to do both. Qualified tuition programs like the 529 plan can help you save towards education costs in a tax-advantaged way, but there are other ways to save as well. At Alloy Wealth Management, we help clients navigate complicated financial planning decisions every day. We’d be happy to answer any questions you have about the best approach to college savings. Just call us at 800-689-3935.

While many parents of means believe they have a moral responsibility to pay for their child’s college education in-full, there is something to be said for making a child work to pay their own way in life. Teaching your child about money management and saving and investing at a young age can empower them to become financially independent. When they invest in their own education and future, it’s likely they’ll take going to college more seriously. If nothing else, make it your child’s responsibility to pay for their books and spending so they can learn the value of a dollar.

Another way to prevent student loan debt is to talk to your son or daughter to make sure they don’t have an alternative dream for their future. They may want to start a business, join the military, or learn a trade and any money you saved towards their education can be used to help them in other ways. If you have questions about financial planning, investing, or any of our other services call Alloy Wealth at 800-689-3935.