Planning for your child's college education can be a daunting task, but utilizing a 529 plan can make it a little easier. These tax-advantaged savings plans are specifically designed to help families save for future education expenses. One option within the 529 plan umbrella is the College Well Private College 529 Plan, which offers its own set of unique advantages.

College Well’s prepaid plan allows you to lock in today's tuition rates at eligible colleges and universities. This can be a great option if you know where your child will be attending school and want to avoid future tuition increases.

"The good news is if you're saving in the plan, not only are you locking in and saving for all of the close to 300 schools in the plan at the same time, if you're actively saving and we happen to add a school, you would also be locked into their tuition and fee rates based on when you were saving." - Jonathan Sparling

(00:03:11) 529 Plans: Locking Tuition vs Investment Options

(00:12:11) Maximizing Benefits: Qualified Expenses in 529 Plans

(00:15:44) Versatile 529 Plan Legislation for Education

(00:21:06) 529 Plan Tax Benefits Across States

(00:29:41) Proactive Financial Strategies for College Success

Jonathan Sparling serves as a knowledgeable advocate for College Well and emphasizes the critical role of early discussions about college planning and costs, urging families to engage children in conversations about the value of higher education and to visit college campuses to demystify college life and financial aspects.

Jonathan highlights the unique benefits of College Well's prepaid 529 plan, which allows families to lock in current tuition rates at nearly 300 private colleges, offering a safeguard against future tuition inflation. He sees College Well as an essential resource for families, particularly those with children in middle or high school, providing them with the necessary tools and knowledge to make informed decisions about college savings and financial aid.

• Learn the difference (and varying benefits) of state-sponsored 529 plans versus private 529 plans like that at collegewell.com

• Determine which savings or prepaid tool is best for your family’s college planning based on your income, which school your child wants to attend, and what specific costs you’ll incur as your child goes to college

• 529 savings plans involve after-tax contributions and investment options

• Qualified expenses in 529 plans include tuition, fees, room and board, and certain travel expenses

• The evolving landscape of 529 legislation now includes K-12 expenses, student loan repayment, and apprenticeship programs

• State income tax breaks for college savings contributions vary by state

Connect with Jonathan Sparling:

CollegeWell: https://www.collegewell.com/authors/jonathan-sparling/

LinkedIn: https://www.linkedin.com/in/jonathan-sparling-pc529/

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.

Podcast video editing & management provided by podcastabundance.com

How do factors like major, gender, and ethnicity influence whether your child receives financial aid?

Understanding the typical college business model is crucial. The college financial aid formula is a multifaceted and strategic system that determines how aid is distributed to students. It comprises loans, scholarships, and other forms of gift aid. Highly competitive schools prioritize need-based aid over merit scholarships.

"The more a student helps the college meet its needs, the more aid you generally get." - Jack Wang

This is important to remember when applying to colleges, as demonstrating financial need may be more beneficial than having a high GPA or test scores. Navigating financial aid for college can be like a strategic game, with scholarships, loans, and FAFSA all in play. Understanding the rules and playing smart is key to securing the best aid package for your education journey.

• Look for scholarships and gift aid to minimize loans
• Understand the criteria and requirements for different types of aid
• Consider the business model of colleges in the financial aid process
• Differentiate between highly competitive schools and smaller schools in terms of aid
• Recognize the importance of factors like major, gender, location, and ethnicity in aid distribution

(00:02:56) Variety of College Financial Assistance Options

(00:05:18) Scholarships: Balancing Merit and Financial Need

(00:10:00) Student Selection Strategies in College Admissions

(00:21:40) Financial Aid Strategy at Competitive vs. Smaller Schools

(00:26:29) Major-based Financial Aid Allocation in Colleges

There are various types of financial aid available for college students, with loans being the most common, but scholarships and other forms of gift aid are preferred as they do not require repayment. Scholarships often blend merit-based and need-based elements, and the FAFSA is sometimes essential for eligibility, illustrating the complexity of financial aid.

Colleges, functioning like businesses, strategically distribute aid to attract students who align with their institutional goals, similar to an NFL draft, which influences the financial aid process. Additionally, factors like major, gender, and ethnicity play a role in financial aid decisions, with colleges investing in specific programs or facilities to attract desired student demographics, underscoring the importance of understanding these dynamics in securing aid.

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.

Financial education in youth sets the stage for a lifetime of financial responsibility.

Teaching teens to save for emergencies is vital for unexpected costs. Unfortunately, most teens don’t want to listen to their parents...that’s where a financial coach who specializes in budgeting for teens and young adults comes in.

Colleen Salchow of Salchow Coaching patiently works with teenagers to set aside money for unexpected expenses can help them develop a safety net for emergencies and learn the importance of being financially prepared for the unexpected.

(00:04:15) Early Financial Empowerment for Teens

(00:09:36) Building Financial Safety Nets for Teens

(00:15:15) Empowering Teens Through Intentional Financial Planning

(00:18:04) Instilling Responsible Money Attitudes in Children

(00:19:12) Financial Literacy Through Teen Budgeting Apps

(00:26:14) Financial Management Foundation for Students

Colleen Salchow is an accredited financial counselor dedicated to improving financial literacy among teenagers and young adults. After graduating from Western Michigan University in 2007 with a degree in special education, Colleen witnessed firsthand the financial struggles faced by families during her time as a middle school special education teacher in Detroit.

Her personal experiences with financial challenges after moving to North Carolina further fueled her passion for financial literacy. In 2019, she launched her business as a financial coach, focusing on helping teens develop sound financial habits and understand critical financial concepts. Colleen leverages her teaching background to effectively communicate and engage with young people, empowering them to make informed financial decisions for a secure future.

• Start conversations about financial literacy early on to instill valuable money management skills
• Encourage teens to save at least 20% of their income for various purposes such as emergency funds or specific goals
• Guide teenagers in creating a plan to save for emergencies by identifying key expenses they rely on the most
• Teach children to save, donate, and spend wisely to develop healthy money habits
• Introduce budgeting to children by giving them an allowance and guiding them on how to allocate portions for different purposes
• Start high schoolers and college students with one savings account to understand its rules before considering multiple accounts

(00:02:58) "I saw at my own kitchen table the importance of paying off debt and learning how to talk to my spouse about finances." - Colleen Salchow

Follow Colleen Salchow:

LinkedIn: https://www.linkedin.com/in/colleensalchow/

Salchow Coaching: https://salchowcoaching.com/

Instagram: https://www.instagram.com/csalchow1/

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.

Podcast video editing & management provided by podcastabundance.com