If there’s one thing the impending back-to-school season makes clear, it’s that the cost of higher education in the U.S. is nerve-racking. The average tuition and fees for the 2021 to 2022 school year is $10,338 at an in-state public college, $22,698 at an out-of-state and $38,185 at a private school, according to U.S. News data.
Based on how much costs are increasing each year, though, millennials can expect to see far larger bills by the time their kids get to college. How does one possibly prepare for a child to go to university while also securing one’s own financial future?
The most common answer is by using a 529 College Savings Plan. But for some families, I’d argue that the Roth IRA — yes, the retirement account — offers a more flexible way to build up your kid’s higher education fund.
