One-on-One with Alison LeCloux

Married with two small children, Michigan-based Thrivent Financial representative Alison LeCloux is making important college-funding decisions right along with some of her clients. We asked LeCloux how she and her husband, Mike, formulated their game plan—and how they plan to stick to it.

Thrivent magazine: When did you start planning for your first child’s education?
Alison LeCloux: We started talking about college savings months before our 2-year-old son Owen was even born, and we opened his first savings account when he was 3 months old. We did the same thing for our daughter, Norah, who will be 1 year old this June. Since we have more than 15 years before we need to access that money, we can weather the ups and downs of the market and watch the account accumulate slowly over time.

Thrivent: What percentage of your children’s college tuition costs do you hope to fund?
LeCloux: We didn’t set a percentage; we simply decided how much we could afford to budget each month. That’s the approach that works best for us, and we’ll increase the monthly allocation as our incomes allow.

Thrivent: Will you encourage your children to work in high school and college to help offset their college costs?
LeCloux: Absolutely. My husband and I both worked during high school and will help Owen and Norah secure appropriate jobs if they show an interest in earning money. Then it’s our responsibility as parents to help them budget their money by setting some aside for college, donating some to the charity of their choice and spending the remainder on things they enjoy.

Thrivent: What tweaks have you made to your college savings plan since you established it?
LeCloux: When we get our tax returns or I get a bonus at work, we talk about our plan and revise it as needed—usually two or three times per year. So far we have only increased the amount that we are saving and not the way the money is invested. Because we have a well-diversified approach that matches our risk tolerance, we probably won’t need to change the way the money is invested until Owen and Norah are in their mid-teens.

Thrivent: Have you had to make any sacrifices to fund Owen and Norah’s college accounts?
LeCloux: Mike and I love to travel internationally, but haven’t since our kids were born. Part of the money we would have spent traveling is being diverted into their college accounts. One thing we do not cut back on is our retirement savings. We know that we can’t funnel every last dime into the kids’ college accounts.

Thrivent: Both you and your husband are college graduates. Has your experience with your own tuition bills affected the decisions you’re making now?
LeCloux: Our parents helped out on occasion, but we paid for tuition through grants, scholarships, loans, and our own earnings and savings. The experience made us appreciate our education and work hard because we were footing most of the bill. We hope Owen and Norah someday learn the same lessons in time management, determination and responsibility.

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