If you ask me Is Saving penalized? Then the answer would indeed be yes, while we taking of Financial aid packages. Although, it may sound a bit unusual.

It is said so because it has been found that families whose savings are high get least benefits of financial aid packages. As financial aid packages are more generously offered to those desirous to be educated but are lagging behind financially. The EFC (expected family contribution) of families with more saving grows high and thereby reducing the probability of receiving a good financial aid from the concerned authority. The EFC of families excluding those coming from low income group and holding huge assets is primarily determined at high percentage of income.

Apart from that it’s always good to be prepared to tackle any misleading that may crop during any moment of our life such as unemployment or we may come across an accident that can cause physical or mental disability.

So considering the above circumstances its better to collect average amount of money for your children’s futures studies as customization of money takes a long time. Moreover, you can’t judge your eligibility regarding whether you qualify for a sound financial aid package or not till you reach the stage for higher studies, which then depends on your academic record as well.