There’s an old adage in college planning: You can always go to a cheaper school or skip college altogether. But if those two scenarios are not on your radar, then you need to explore three basic money resources: Savings, Cash Flow and Borrowing. Yesterday’s Money: Savings Excluding emergency accounts, most parents have some short-term monies, retirement accounts and home equity they can access. It may not be the best use of the money, especially borrowing from a 401(k), but if there’s no appetite for student loans and other forms of grant money, then that’s where the money is. Keep in mind that some households have assets that they can sell to generate money, so a thorough inventory of personal property could yield some undiscovered assets. Today’s Money: Cash Flow It’s stunning to realize that most Americans operate their finances without a budget. They don’t even have a handle on their monthly cash flow. But if you create a budget, you’ll be able to review your cash flow, i.e. money left over after essential and discretionary spending. Discretionary spending may be curtailed while the children are in school to free up cash flow for college payments. Downsizing your lifestyle to create   Read more…