Welcome to the Making Margin podcast! Greenway’s team is here to discuss common financial mistakes and to help you navigate them. 

Meet the voices behind Making Margin:

• Nick
• Allie
• Jeff

Special Guest: Allen Starrett

Today’s topic is all about saving for college. 

• College is expensive, and saving for it can be a big challenge, especially as it competes with other priorities
• According to US News,  the average four year in-state college costs about $10000 year, just for tuition, and the average private college costs almost $37000per year
• They point out multiple times on their site that most students pay less than the sticker prices, thanks to financial aid and scholarships
• While an institution like Yale University in Connecticut, for instance, advertises a sticker price of more than $55,000 for tuition and fees in 2019-2020, the average cost to students last year after receiving need-based grants was around $17,000.
• And, college graduates earn more over their lifetime. A recent study from Georgetown University found that, on average, college graduates earn $1 million more in earnings over their lifetime. Another recent study by the Pew Research Center found that the median yearly income gap between high school and college graduates is around $17,500.

Discussion Topics:

• Saving for college vs. competing priorities
• Is college going to look like it does now when our kids are old enough to go?
• What are the best vehicles to use to save for college? How can they be utilized most effectively?

Take Away: Having a plan, for whatever you decide to do, is key.

Resources:
- Here is a good recap of ownership of a 529 by a grandparent and all the implications.