Invest in Your Children’s Future

Planning for Education Costs

The cost of higher education continues to rise, making early planning essential. In Washington, families have access to tools like 529 college savings plans and the GET (Guaranteed Education Tuition) program. Many parents and grandparents in the Tri-Cities want to help cover college expenses, but also need to balance retirement goals. At Monson Wealth Management, we make it possible to support your child’s future without derailing your own plans.

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Education Savings Strategies

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529 College Savings Plans

529 plans allow tax-free growth and tax-free withdrawals for qualified education expenses. While Washington offers no state income tax deduction, the federal tax benefits are powerful.

Custodial Accounts (UTMA/UGMA)

These accounts allow saving in a child’s name but may reduce financial aid eligibility.

Coverdell ESAs

An alternative for education savings, though with lower contribution limits.

Prepaid Tuition and Scholarships

The WA GET program lets families prepay tuition. Scholarships should also be considered as part of the overall funding plan.

Balancing College Savings with Other Goals

A common challenge for families is deciding how much to prioritize education savings over retirement. You can borrow for college, but you cannot borrow for retirement. Our approach ensures your retirement is on track before allocating too much to education savings. For grandparents, we also consider gifting strategies and estate planning when funding 529s.

College Cost Projection and Funding Plan

We project future tuition costs based on your child’s age and the type of school—public or private. From there, we calculate how much you need to save each month. These contributions are integrated into your overall financial plan, ensuring they work alongside retirement, tax, and investment strategies. We also factor in how accounts may impact financial aid eligibility.

Secure Your Child’s Education

The best time to start saving for college was yesterday—the second best is today. Let’s create an education savings plan that fits your budget and gives your child the opportunities they deserve.

  • How much should I save each month?

    It depends on the age of your child and your target school type. We’ll run personalized projections.

  • What if my child earns a scholarship or doesn’t go to college?

    529 plans are flexible. Funds can be transferred to another beneficiary or withdrawn with a penalty on earnings only.

  • Can I use my Roth IRA for college?

    Yes, but it may impact your retirement. We help weigh the tradeoffs before recommending this option.

  • Should I pay off my loans or save for kids?

    Often, high-interest debt should be paid off first. We’ll help create a balanced plan that may allow for both.

  • Does saving in a 529 affect financial aid?

    Yes, but minimally. Parent-owned 529s are treated favorably in aid formulas.