Multiple kids maturing to college age, shrinking retirement funds, loss of home equity, loss of personal wealth, plus annually rising college tuition and costs…no wonder middle class families are concerned about financial aid. When families assume all children will graduate from college, the question is, “What is the family’s collective (this includes all siblings, not just mom and dad) willingness to accomplish this goal?” No one wants to draw the short straw, in a family or otherwise. Mom and Dad want to replenish and grow retirement savings, while each child wants the “best” college for themselves. Wanting to help each other or at least not negatively affect someone else’s opportunities complicates the equation, given there’s a limited number of dollars available in the family budget.
Families are faced with difficult choices: do we downsize our living standards? Do we save less for retirement with the expectation that after college we’ll have free cash to double our savings? Does one kid attend a less expensive college so another can graduate from a more expensive school? Do we expect all kids to contribute to their educational expenses and how do we get them to participate? Does one kid seek “the road not taken” and forgo or delay college?
Ugh. No wonder financial aid conversations are difficult and complicated. Creative Marbles suggests starting s-l-o-w-l-y. Paying for college is a 4 year process, that can be revisited each year. Researching worthy college options and their merit aid policies can help narrow the choices for application, so all family members can work together, while staying within the family budget. Starting conversations before the senior year can help families reduce expenses or save or both before college is imminent. A little planning can help reduce the stress of college admissions and build confidence in the choices made for each child’s future.
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Jill Yoshikawa, Ed M, is a University of California and Harvard trained educator and Partner at Creative Marbles Consultancy. You can contact Jill at [email protected] or, read her short biography.
