The Top 4 College Planning Mistakes and How to Avoid Them
By Jeff Gilbert
When you first held your child, did you dream about all the milestones they’d reach, perhaps even seeing them attend a top-tier college that sets the stage for their career? Most parents would say yes, but few fully understand the true cost of making that dream a reality. Even if you’ve started saving, do you have a complete strategy for the entire college planning process?
Many families have regrets due to common college planning mistakes. Here are four of the most frequent mistakes to keep in mind as you prepare to help your child embark on their higher education journey.
1. Starting the Planning Process Too Late
When a college education in the U.S. can cost upwards of $360,000 for an undergraduate degree at a top school and over $11,600 each year for in-state tuition alone at a public institution, it’s a good idea to start saving for your child’s education as early as possible.
And unfortunately, good intentions often won’t cut it. Parents might plan to take care of a portion or even all the college costs for their kids, but with competing financial goals like retirement planning and paying off a mortgage, it can be challenging to meet that commitment. The earlier you start planning, the easier it will be to accommodate multiple financial goals, and the more likely you will be to succeed.
In terms of other aspects of college planning, such as scholarship research, college visits, testing, career exploration, and crafting applications, you don’t want to run out of time or make decisions in a rush. You won’t regret starting too early, but you could very well regret winging it at the last minute.
2. Missing Financial Aid Deadlines
Most colleges require financial aid forms to be submitted by the beginning or middle of February, but that doesn’t mean you have to wait that long to submit them. Even if you don’t have all your tax information for the previous year, use estimates and amend amounts later. Some schools and states award financial aid on a first-come, first-served basis until it runs out, so apply for aid as soon as possible after January 1st. It could save you a big chunk of change.
3. Not Having a Career Game Plan
While you shouldn’t expect your teenager to know exactly what they want to do with the rest of their life, you can help them examine and explore different majors and career options. Work with your child to brainstorm their interests and skills and, instead of just picking colleges based on location or reputation, do the legwork to find colleges that will help your child succeed in their future career.
That could mean looking at schools that specialize in certain fields or ones that help students get internships or mentorships. If your child is unsure of what they want to do, make sure you pick a college that offers a variety of majors and has opportunities for students to switch majors without adding years to their education. With the rising costs of tuition, you want to maximize what your child is getting out of their college years.
4. Neglecting to Enlist Professional Support to Avoid College Planning Mistakes
College planning is complex and layered. Even if you’ve made a start, there are plenty of hidden pitfalls and opportunities that could either slow you down or give you an edge. No matter where you are in the journey, partnering with a professional with experience in college planning can help you avoid costly college planning mistakes, optimize your resources, and simplify the process.
If you want to steer clear of the most common pitfalls families face, we’d love to help. Give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.
Scottsdale office: 480-801-5010, info@balboawealth.com
About Jeff
Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Scottsdale, Jeff and Balboa work with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.
Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.
