Investing and saving recommendations are typically based on economic and financial calculations, research and theories. However, despite what a time value of money calculation may tell you, I've found that the best savings plan for college really differs for each family. Before you even start putting money away, it's important to understand your financial picture and discuss your value-based goals for funding college.
First, map out your family's financial facts:
- Parent's ages and income
- Cash flow
- Retirement Savings
- Ages and number of children
- Assets and liabilities
- Gifts from other family members