Did you know that 50% of college students in the US do not graduate within 6 years?
50%. The main reason for this? The financial cost.
In this episode I spoke with Abby Chao, co-founder and COO for CollegeBacker. An online service that makes saving for college simple, smart, social and accessible. Her approach is a modern, tech-forward approach. Crowdfund your savings fund!
I know that more people are beginning to question the relevance of university or college. The technological world is moving at such a fast pace that many large, old institutions are having a hard time keeping up. But the largest uncertainty is the huge cost and debt load that many carry because of college.
In this episode Abby and I talked about her company, CollegeBacker, the importance of saving for education and how they utilize a new approach to saving- by leveraging your social network.
How The Seed Was Planted
Abby’s interest in investing began as a teenager. She credits the Illinois Math and Science Academy. A state funded school for “math and science nerds”. Abby says it allowed students to pursue their passions, collaborate and research. It was an introduction to the book Rich Dad Poor Dad from her grade 7 math teacher that first peaked her interest in finance, investing and business.
But it wasn’t until she worked as a social sector fellow with McKinsey & Company that her passion crossed into the education field. The sector fellow focused on k-12 education. It helped her understand public education throughout the country. She saw disparity in education. Financial disparity. Many schools across the country were not preparing kids for life after school. She saw how special her education experience had been.
CollegeBacker
CollegeBacker is a college savings vehicle in the US. It is a 529 fund that helps to save but also gives the tools to rally friends and family to help you.
In this episode Abby talked about:
Why have a savings plan for college?
Flexibilities with this fund~ What happens if your child decides not to go to college?
How you can leverage social networks to help save
The power of belief and expectations to support kids
Unique ways that families can save for post secondary no matter where you live in the world
Abby is leaving listeners with a gift. Visit collegebacker.com/honeyimhomeschooling
I’d love to hear your feedback. Do you feel that post secondary is an important part of your or your child’s future? How are you planning to handle the financial aspect? You can email me through here.
Check out my episode with John Lanza on~ How To Raise Money Smart Kids
References
Illinois Math and Science Academy
Rich Dad Poor Dad Book
