Parent to Parent: Financial aid

Play dates and potty training are a priority for most new parents. But something that may not be top of mind is planning for a child's financial future.

Erwin Grant, financial advisor
"College costs are going up seven percent per year."

The average cost of college right now is around $12,000 a year, and that's before room and board charges. Fast-forward to the year 2025, and you're looking at about $45,000 a year to send a kid to college!

So it's time to start saving!

Financial advisors say the 529 plan is a good option for parents.

Erwin Grant, financial advisor
"You put the money in and it becomes tax free as long as you use it for college. And books, you can also use it for vocational schools as well, but it's important for you to look at all the options that you have available."

A benefit of the 529 plan is, if a first child decides college isn't for them, the savings can be used for a second or third child's education.

Erwin Grant, financial advisor
"When you get married and know you're having kids, start saving for college right away."

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