Helping My Adult Child Navigate Savings

My 23 year old daughter graduated with a degree in Molecular, Cellular, and Developmental Biology and promptly moved home after her graduation. Her decision to move home was motivated by two reasons. One, she needed to save money for medical school. And two, she needed time to study for the MCAT. Moving home allowed her to juggle studying, working two jobs, and putting money into the bank for her tuition. I have been helping my adult child navigate savings as she travels her journey to become a doctor. 

Helping My Adult Child Navigate Savings

Medical school comes with a huge price tag, and she knows that she will be taking out loans to finance this part of her education. But whatever she can save now, will help her manage the bills she incurs during medical school later.  

Helping My Adult Child Navigate Savings

Moving home gave her two years to save. Interest rates are relatively low right now, and her money is needed in the not too distant future. So to maximize savings we looked at online CDs (certificates of deposit). Historically, CDs pay more than a standard savings account, and online depositories tend to pay a higher rate than brick and mortar institutions. Because she will need the money sooner than later, but not all at once, she set up CDs with staggered maturity dates.

Meaning, that first she invested in an 18 month CD, and then three months later (after more money was saved) she invested in another 18 month CD, and again three months later. With this strategy she will have funds maturing every three months – after the initial 18 month period. At that time, she can than decide to withdraw the money for use, or roll it over for another set time period. This gives her access to money when she will need it and allows her to earn just a little bit more in interest.

Helping My Adult Child Navigate Savings

This journey of hers to become a doctor is getting real! Last week the two of us headed to her future home for admitted student day. After a morning meeting other students and their parents, talking with professors and staff, and touring the campus, we spent the afternoon touring dozens of potential apartments. It was a very full day! 

When it comes to paying tuition and taking care of living costs – every little bit saved will help.

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