I know this is where I'm expected to explain the best saving options for your children's college education, but I have something far more important to discuss with you.
I don't want you to think about financing college if:
- You're drowning in credit card debt.
- You have hefty car loans.
- You have tapped into a home equity loan just to keep up with your living costs.
- You don't have an emergency cash fund to cover eight months of living expenses.
- You don't have life insurance.
- Your retirement account isn't built up.
If you do have your personal finances in order and can indeed set aside some money for your kids' education, there are options such as 529 savings plans and Coverdell Education savings accounts, which offer tax breaks for education investments. I recommend heading over to savingforcollege.com; my friend Joseph Hurley, CEO and founder of the website, has a ton of information on all your financing options, and lots of easy-to-follow advice.