if the goal is to set aside funds for a child's college education, financial planning will go through the process if determining how much money to set aside in order to funds four years in college. Once the goal is clear, it is possible to look at the revenue stream and determine how much money must be set aside each month (or pay period) in order to save the desired amount of money. That amount is then included in your budget and if faithfully set aside each month (or pay period) it will result in having sufficient funds at the time when junior embarks on his college career. Does this make sense?
This question was answered on: May 23, 2022
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