Dr. Rachelle Keck
Iowa Student Loan Liquidity Corporation board member
For More Information Contact:
Tara Kamin
Corporate Communications Manager
Iowa Student Loan Liquidity Corporation
(515) 273-7404 | tkamin@StudentLoan.org
April is Financial Literacy Month – a timely opportunity for families to review their financial priorities and plans. For parents of K-12 students, this review often includes thinking ahead about education or training after high school and how those possibilities fit within broader family goals.
Financial planning looks different for every family. Still, there are several widely shared practices that can help parents think more clearly about what lies ahead and how to prepare.
- Know your goals.
Every family’s situation is unique, and financial plans rarely focus on just one objective. You may be working to reduce debt, save for retirement, prepare for a child’s education, plan for a major purchase or balance several of these priorities at once.
A helpful first step is to write down your financial goals in one place. Having a clear list makes it easier to evaluate tradeoffs, revisit assumptions and adjust priorities as circumstances change.
2. Make reasonable estimates.
Once goals are identified, the next step is to estimate how much each goal may cost and how much time you have to prepare. This includes projecting retirement needs and – for families planning ahead – the cost of education programs after high school.
When estimating college or training costs, families may find it useful to look at the current cost of several options, including tuition and fees, housing and meals, supplies, transportation, and other everyday expenses. Costs vary by institution and program, and planning often involves making reasonable assumptions about future increases over time.
For families with students approaching high school graduation, tools such as the College Funding Forecaster can help estimate total education costs. Helpful planning resources, including the free College Financing Information Kit, are available at https://www.iowastudentloan.org.
3. Revisit (or create) an investment and savings plan.
Financial plans evolve as family circumstances change. As income shifts, children grow older or timelines shorten, families may need to reconsider how much they are saving and the ways in which they are saving for future goals.
There are multiple college savings options available, including 529 plans, Education Savings Accounts such as Coverdell accounts, savings accounts, savings bonds, trusts and other approaches. Some options, including 529 plans, can be used for training, trade school and other education pathways beyond traditional four year colleges.
Families may wish to consult a qualified financial professional when considering which savings or investment options align best with their individual circumstances.
4. Stay informed.
Financial planning is not a once-a-year activity. Staying informed throughout the year can help families anticipate upcoming milestones and adjust plans proactively. Online tools, mobile apps and email resources can make this easier.
One option for families with students in grades 8 through 12 is SP3, a free planning service available at www.SP3.org. This email service provides twice-monthly college planning and financing tips tailored to students’ grade levels and helps families stay aware of key planning moments. Through May 31, new and currently registered SP3 parent participants are eligible for a onetime drawing for a chance to win one of ten $1,000 529 college savings deposits.
5. Revisit your progress regularly.
Whether you review your financial plan in April or at another time each year, an annual check-in can help ensure your plan continues to reflect your goals and reality. Reviewing balances, investment allocations, upcoming expenses and household budgets allows families to adjust course as life circumstances evolve.
As students move through middle and high school, families may want to access free planning tools such as those found at https://www.iowastudentloan.org to explore education and career pathways and better understand the financial implications of different choices.
Final Note
Financial literacy is not about having perfect answers – it is about asking thoughtful questions early, revisiting them often, and staying engaged in the planning process. Starting these conversations early gives families more flexibility, more options, and more confidence as decisions approach.
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