NORFOLK, Va. — Earlier this month, I did a report about saving for college.
I wanted to know how early families should start saving and how difficult it is to manage saving when dealing with the expenses of everyday life.
I focused a good chunk of my report on the Virginia529 account, which is a savings plan designed to help people get ahead.
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However, after I talked with someone who works for Virginia529, I felt like there was more to the story. I thought it was important to follow up and talk to someone who benefited from that program and started to create generational wealth for their family.
As I was researching, I met Jill Parker Landsman. She started a Virginia529 account in 1996 for her two kids.
They're adults now, but at the time, her daughter went to Marist College in New York and her son went to Christopher Newport University in Newport News.
Landsman says her kids graduated without debt because they were able to set so much aside beforehand.
"I think it's one of the smartest ways to prepare to ensure that you don't have your children go into student debt, or you go into student debt to pay for your children's college," she says.
Landsman believes these set them up for success.
"I think that when you can put the ripple effects through the generations of being financially responsible, it's a win, win, win, win, win," she says.
She tells me because they didn't graduate with debt, they could focus on saving for homeownership. Now, Jill and her husband are doing the same with their grandchildren.
"The point is for young people and millennials — like the sooner you're in [the market and investing], the greater your gains. And the sooner you start up a 529, the less pressure you're under when your child does go to college," she says.
However, not everyone will have the same experience that the Landsman's did.
The wealth and pay gaps in this country are a reality for millions of families. Some will have trouble with the homebuying process or less access to financial services. Poor credit also plays a role in creating financial success.
Inflation is also causing countless families to live paycheck-to-paycheck.
According to a LendingClub and PYMNTS report, "61% of U.S. consumers lived paycheck to paycheck in April 2022, a nine percentage-point increase from 52% in April 2021."
So, what are your options then?
Financial planners say:
- Change your mindset
- Budget and save; even if you only save a small amount, it’s better than nothing
- Consider a high-yield savings account
- Involve kids in the conversation
- Build an emergency fund
- Maximize tax benefits
- Set up a will or a trust so you can pass your assets down to your kids.
If there is something that helped your family that you think could benefit others I want to know about. The more we share information, the more helpful we can be to our community.
Email problemsolvers@wtkr.com or fill out the form below and I'll be sure to follow up with any responses.
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