With college tuition as high as it is today, many of our clients are wondering how they can best contribute toward their grandchildren’s education expenses. As you can imagine, the best way depends on many factors. The financial plan of all three generations (grandparents, adult children, and the grandchild attending college) and the grandchild’s school of choice (and acceptance) should all be considered.
If your grandchildren are young and you are wondering where to start, there are many options. If you would like to discuss this with us, please let us know. We’ve found that this subject really warrants talking through your unique situation and circumstances. Here are some ideas to get your wheels turning.
If your grandchild is in high school or you would like to wait until the grandchildren are closer to college-age, then a 529 Plan is probably not the best savings vehicle. If need-based financial aid is a consideration*, you could wait until the grandchild completes their first financial aid application (typically in fall of their senior year of high school) to better understand what aid might look like for them.
We hope this gives you more guidance on your options as a grandparent in how you can assist in helping your grandchildren pay for college if you are able. Careful coordination with the student, parents, school, and financial planner are recommended. Please reach out to schedule a meeting with us at Bragg if you would like to walk through the various options which suit your family best.
*See Financial Aid 101 for a deep dive into the Free Application for Federal Student Aid, or FAFSA
This information is believed to be accurate but should not be used as specific investment or tax advice. You should always consult your tax professional or other advisors before acting on the ideas presented here