School is probably one of the most important things for a child, so it's natural for every parent to want the best option for their child. Many parents understand that a private school might help their child develop in the best way possible, but they may be wondering whether they can actually afford it. Have a look at the guide below to find out how a financial planner can help you plan to take your child to a private school in Rochester that meets your standards.
1. They Can Help You Leverage the Tax Code
A good financial planner can help you take advantage of the tax code. They can do this by helping you to arrange your finances in such a way that maximizes your ability to qualify for the tax breaks and credits that are typically offered to parents. Some of these tax breaks include the child and dependent care credit, the earned income tax credit, and the child tax credit. An expert will know what you need to do to qualify for any of these, as well as the one that you should aim to get in the first place. This is one of the reasons why 95% of the people who have financial advisors believe that it's worth the money to have one.
2. They Can Offer Options for Cost Management
Even though there are 34,576 private schools in America that serve 5.7 million PK-12 students, you might have a hard time finding one that your finances can comfortably afford for your child. This is where a financial advisor comes in, as they can help you figure out the options that you have in terms of cost management. For instance, they could help you set up and benefit from a 529 plan to fund your child's education. They could also show you how to claim private school tuition in order to reduce the amount of taxes you need to pay to the state, which differs from one state to another.
3. They Can Help You Predict Your Future Income
Next, a financial advisor can help you predict your future income, especially important for self-employed people and freelancers who may not have a structured approach to their finances. Instances such as clients failing to pay on time and other issues lead to inconsistencies in income that can affect your ability to plan for things like tuition fees. The professional will use mathematical models and statistical data to predict your future income and use this information to come up with a realistic household budget.
4. They Can Educate Your Children About Finances
Last but not least, a financial advisor can help educate both you and your child on financial literacy. This is one of the most important kinds of information that you can get in your life as it makes it possible for you to manage your finances a lot better and get the most out of any money you get. In much the same way as around 28.1 million websites make use of Google Analytics, a financial advisor can show you how to use statistics and other data to take control of your finances and plan for the future. This can prove beneficial if started early since there will be time to put the measures to work.
In these four ways, a financial planner can help you work out the way to get your child through private school. With some effort and a lot of consistency, you'll see the results of the plans that you put in place. You can improve your entire life while managing to put your child through private school as a result.