Private School Funding Options

By Kim Hamer | November 12, 2009

Here are three different ideas you can implement today that will put you back into motion and allow you to take control of your monetary concerns around paying for your child’s private school education. These are steps that my late husband and I did when we un-idioted ourselves. They worked for us. They have worked for clients. They can work for you!

IDEA #1 – Private School Does NOT Have To Be From K – 12!

Consider when your child will attend private school. You don’t need to send your child to private school for all 13 years! When looking at your child’s whole school experience, other than college what do you think are the most important educational years? Elementary school, where they build a foundation for learning? High school, where the rigors often prepare kids well for college? Middle school, where kids learn how to study and grades don’t count? Your child does not have to attend private school from K – 12 grades. If paying for K – 12 is overwhelming, paying for part of it is a great way to relieve the pressure and assuage the guilt.

It is simply NOT TRUE that if your child doesn’t go to private elementary school she will not get into private high school. Schools like diversity and a public school kid fits that definition.

IDEA #2 – Create A Spending Plan NOW!

I know, I’ve already said that in an earlier newsletter, but good things cannot be over stated. Spending plans allow you to see where you are spending your money. When you track your spending you may find a leak. My husband and I found that we were burning through $600 cash a month for little expensive odds and ends. Leak fixed.

Get receipts for everything. Once you know where you are spending your money, you will be surprised at how easy (and satisfying) it is to cut back in areas where you can.

IDEA #3 – Start a Coverdell Educational Savings Account (ESA) NOW!

If you have a child in preschool and you decide that private middle and high school is more important, then this is great option. With the Coverdell you can put away up to $2,000 a year. It’s not a lot but if you are saving for 6 years with an interest rate of 5%, it adds up.

The Coverdell Savings Plan can be used for educational needs from K -12 AND for college. No matter what your schooling decision, it will ease the stress level when it comes to paying for anything school related. Of course, there are restrictions. Read the publication carefully.
http://www.irs.gov/publications/p970/ch07.html

You may not be able to afford private elementary school today, but with a little planning you will be able to do it later. It won’t be easy but really, since when have all the really satisfying things we accomplish in life been easy. And that is what makes them so satisfying.

Your PS (Private School) Action Plan For This Week:

1. Download my free monthly budget spreadsheet:
http://www.getintoprivateschool.com/resources.html

2. Open a Coverdell ESA account today:
http://www.savingforcollege.com/coverdell_esa_providers/

(Other banks also do them. Talk to your financial advisor for other options.)