Education Planning & Funding

Education Planning & Funding

Families have come to us with the same question: what’s the best way to save for a child’s education? The honest answer depends on the family, which is why we don’t lead with a product.

At Essex LLC, education planning is part of our broader Planning-Based Money Management™ approach. We look at how education savings fits into your full financial picture, not just which account to open.

For over 30 years Essex has helped families work through education funding decisions that support their children without compromising their own long-term plans.

Finding the Right Savings Vehicle for Your Situation

There’s No Single Right Answer

529 plans, custodial accounts (UTMA/UGMA), Coverdell ESAs, trusts, each option comes with different tax treatment, control, and flexibility.

We look at your specific financial situation, including your income, your timeline, and your broader goals, to figure out which vehicle actually benefits your family the most. What works well for one client isn’t always the right fit for another, even with a similar savings goal.

Weighing the Impact on Financial Aid

Looking at the Full Picture, Not Just the Balance

Is your plan to fully fund your child’s education? Do you want them to partially fund their education or take on some debt. What type of school do they want to attend? What could that cost in the future? Identifying and quantifying a college funding goal could be important when determining the savings strategy.

How and where education savings are held can affect financial aid eligibility down the road. One example could be how a parent-owned account, a grandparent-owned account, and a custodial account can be treated.

We help clients think through these tradeoffs before the money is committed, not after, so the account you choose today doesn’t create a surprise when it’s time to apply for aid.

Filing a FAFSA® form?

Any student, regardless of income, should file the FAFSA form. Many families skip it assuming they earn too much to qualify.  Public, Private and Career schools use the FAFSA form to determine how much financial aid you’re eligible to receive, but it is also used to determine other awards which could include grants, scholarships, work-study funds, and loans. You must submit the form every year.

When needed we are available to assist clients when it comes to time to fill out the form.

What to Do when the Tuition Bill Comes Due

We help our clients determine how to pay for college for the planned time in school; including reviewing effective ways to withdraw funds from their savings vehicles while balancing it with what can be covered by current cashflow, if desired.

Balancing Education with the Rest of Your Plan

Your Children’s Future and Yours

Saving for a child’s education is rarely the only goal in the room. At times, paying for a child’s education can compete with retirement savings, cash flow needs, and other long-term priorities.

We help clients weigh the short-term benefit of funding education against the long-term impact on their own financial security and build a plan that supports both rather than sacrificing one for the other.

Trying to figure out the best way to save for your child’s education? Book a consultation with an Essex financial advisor today.