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4 Vital Issues of Financial Planning for College Education

For many people today, having a college education is a base requirement for obtaining a higher paying career. However, college costs continue to increase many times the average inflation rate. Therefore, it is imperative to engage in College Education Financial Planning.

1.    Get a written financial plan

Call a financial planner or obtain a written plan online at eFinPLAN.com to organize all of your financial affairs and plan for the future. Many people hope to pay for college, however without a plan it is just a wish. The best way to plan for college is in the context of a financial plan, which will help guide you simultaneously through all the moving parts of your finances. That way you will make more informed decisions about insurance, college and retirement - about all of the areas of your plan. A plan helps you avoid neglecting one area because you focused too much on another area. A financial plan will also help you spot trouble areas, such as too much debt, and will provide suggestions to improve your overall situation.

eFinPLAN.com is an online comprehensive financial planning system that is easy to use and educational; it covers over 50 areas including college education planning. It has the most up-to-date cost information for most colleges, so that you can plan for your children’s college of choice.

2.    Establish priorities and set reasonable goals

A vital part of financial planning is establishing goals that are reasonable and setting priorities for your financial objectives. Doing so will provide clarity for your financial plan. Many people want to retire early and pay 100% of their children’s education, but it may be difficult for some people to do both. Some have, as their highest priority, paying for college and inadequately fund retirement. The most reasonable goal is probably to fund retirement first and secondly college education. 

3.    Explore the different sources of funding

College costs are increasing at an alarming rate (see below), making it difficult for many people to fully fund college. That fact should not discourage you from planning or from attending. Below we have outlined numerous sources of college funding.  Parents and students need to investigate and be aware of which options may work for them.

4.    Student financial education and management

Students should be engaged in the process of planning, funding, exploring and applying for funding sources. Making students part of the process helps them to know and be informed about all of the issues, and may open more doors to financial opportunities. Secondly, teach your children financial management, budgeting, and debt avoidance skills, so that when they go off to college they don’t add to the amount of debt they might have to incur. 

For more information see eFinPLAN MONEY.EDU article “How to Fund College Education” covering: the benefits of higher education, education cost trends, and sources of funding.

Kent E. Irwin is CEO and founder of eFinplan, LLC. He is also a Chartered Financial Consultant (ChFC), a Chartered Advisor in Philanthropy (CAP) and a Chartered Life Underwriter (CLU). He can be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . For more information about eFinplan, go to the website eFinPLAN.com 

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