Q: I make a nice salary, but I am afraid I haven’t saved very much for my daughter’s college education. Am I a bad parent?

A: Well, a lot of factors determine whether you’re a good parent, but not saving for college can be an advantage in some circumstances. It depends on your total financial picture – specifically how much you make and the assets you hold.

Most parents haven’t saved near enough to pay for college. There always seems to be something getting in the way – preschool, buying a house, braces, sports, birthdays, vacations and the like. The average couples I counsel have saved less than $10,000 for college.


The good news is, by not saving money earmarked specifically for college, (in a 529 Plan or contributing to the Florida pre-paid program for instance) you may have actually increased your chances of using “other people’s money” – in the form of financial aid. You may qualify for help paying for college.

Simply put, if you have saved enough money for college you have ensured that you will pay for college. You will likely not qualify for need-based financial aid. If you haven’t saved, you might be entitled to financial aid. Ah, there’s a downside to everything. In this economy there are more students fighting for the same amount of aid doled out last year. So applying early and doing your homework first may be the difference between getting aid or not.

Jim Beach of Tuition Solutions is an Intergenerational College COLLEGE Funding Counselor. He specializes in helping grandparents and families with students make paying for college a happy time. Contact SMARTS Jim at 561-451-9195 or email: [email protected]

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