Educational Financing is the most important investment you can make.  Many of us have heard the Chinese proverb, “Give a man a fish and feed him for a day, or teach him how to fish and feed him for a lifetime.”  A well financed education has the potential to achieve the latter, not only because of the education but because the student can become engaged in the real cost and value   of the education.  When a student directly experiences this he or she will have a solid stake in its success.

Financial Planning for a new human being starts with conception, because as soon as   we see pregnancy-test-positive we know our responsibilities just doubled for a lifetime.The earlier we start planning for that the better.  One of the hugest financial challenges down the road is education and most families wait way too long to plan and save for that.

Step 1:  Begin saving separately for your child’s education from birth.  Open a 529 College or U. Plan with your bank or investment group such as Fidelity.

As your child matures engage him or her in the value of learning.  What is education actually worth?   Show what it costs.  Let young people know that there is value in the results of what they do and there are ways they can contribute.  This opens doors to merit-based financial aid and scholarships.  Preparing for sports and other types of scholarship programs begins way earlier than most people think.

Step 2:  Explore what merit-based financial aid and scholarships are available 2-3 years before applying and begin your (you, the student) preparation.  It’s not so hard and there are scholarships for everyone.  All you have to do is get out there and write your interests in a short essay and application that works for most scholarships. We at 1on1 Education can help you with this process.  There are many books such as The Scholarship Book available that list thousands of different scholarships, such as a Calm-A-Sutra of Tea Scholarship worth $20,000.  Tests like PSAT open doors to National Merit Scholarships and others for college so take them seriously!

As you get closer, consider what need-based financial aid is available at each educational institute you are applying to (admissions offices are ready to send all that) and work on federal and state aid. This requires more work including tax reports, etc. but is well worth it.

Step 3:  Start by applying to FAFSA, the application for Federal Aid.  Then check out loans from Sallie Mae and state loans from organizations such as MEFA in Massachusetts.  As you begin to get involved in this process it becomes more obvious what to do next and you’ll see how much work it takes, so Start Early and Often!

Here are some additional educational financing articles and websites we recommend clicking on:

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