Not Losing That Much

Once Jason gets going with his Baby Steps, he won't have much trouble in funding his child's educational savings account.

QUESTION: Jason is on Baby Step 2 and has a student loan left to pay. He just had a son a few months ago. Should he be putting money toward the educational savings account for his new son? Dave tells him why he shouldn’t do the Baby Steps out of order.

ANSWER: If you get yourself out of debt, you’ll control your income. What you miss on the educational savings account in 2 years, you can easily make up for by just having some wealth. I felt the same way, and we lost everything including the college funds when my oldest child was 3. I didn’t get to do anything but clean up the mess until she was 5 years old. But 15 years later, her college fund was full and I didn’t even touch it; I just cash flowed college. I did smart stuff for my family overall, and it resulted in being able to pay for college.