Make Your Initial Investments Wisely

This post is sponsored by the Florida Prepaid College Board, through my role as a Believer Blogger. All thoughts are my own.

Monograms: They are enormously popular here in North Florida.

I see monograms on ANYTHING that will fit three letters these days: dresses, athletic tanks, headbands, thermal mugs, boots, umbrellas, Yeti coolers, pacifier holders, burp cloths, blankets, license plates, windshield decals, iPhone home buttons (?), Chuck Taylors … the list is infinite.

Back in the year 2000, when Tenley was 3, monogramming was quite popular among other moms (and kids) but not to the extent it is now. Still, I spent a disproportionately large amount of money on a monogrammed dress for her. The company, which did shows in people’s homes, had compelling arguments: it was well made (true), stylish (true), individual to her because of the personalization (true), and had a deep enough hem that I could continue letting it out as she grew.

The only thing I have left of that dress is a picture.

College Financing

Although some families are flush enough income-wise to spend liberally on children’s clothing and invest in a future beyond preschool, we really weren’t able to do both at the time. It would have been wiser to put that money toward her college education instead and eliminate the need for our family and Tenley to incur student loan debt as we are doing now..

(Note: if you’ve been reading my Believer Blogger posts for a while, you know my parents were more farsighted than I was and bought my kids prepaid plans when they were newborns (thanks, parents!) but if they had not done that, it would have been on my husband and me. I also believe I should have invested in 529 plans to pay for expenses beyond tuition such as books, fees, and housing.)

If you are still on the fence about investing in the Florida Prepaid Plan for your child or a child you care about, consider this before Open Enrollment ends on February 28.

Calculating the Cost of College

I used the Florida Prepaid Cost of Waiting College Savings Calculator to see what parents of a 3 year old today should anticipate regarding college savings:

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According to the “results” chart below:

  • Based on these inputs, the cost of waiting just one year to start saving for your college goal is estimated to be $79 per month
  • Every year you delay, it costs you more to save the same amount of money for college
  • Four years of college could cost you over $206,000 fifteen years from now. You could save 100% of the projected cost by putting aside $774 a month, if you earn a 5% annual return for fourteen years.
  • If you wait just one year to start saving, the monthly cost goes up to $853 to save the same amount of money over 15 years.

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All Those Facts and Figures. What is the Bottom Line?

The bottom line is this: the things you think matter so much now may be a lot less important down the road.

The Florida Prepaid College program, with more options than ever including a one-year Florida university plan, a 2+2 Florida plan taking advantage of our fabulous community college system, and a dormitory plan, is something to think about now. Even putting it off until next year could be costly.

Take it from me; what I should have had monogrammed was a bank, not a dress.

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A Head Start

With the code BLOG1617, you can save 50% off of the $50 application fee!

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For More Information

Visit the Florida Prepaid College Plan by clicking here for information. If you prefer to speak with someone by phone, please call 800-552-GRAD (4723).

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