04 Jul Saving Money for Your Child’s College
The expenses that go along with college can be terrifying to think about, especially if you have multiple kids to send to school. Don’t worry, you can do it. Your child’s education is important, and you’ll do whatever it takes to get them there. This includes saving money for them when they can’t do it themselves.
Here are some tips on how to save money for your child’s college, along with all of your other expenses.
1. Start early.
The earlier you start saving money, the better. It’s best to start a savings account as soon as your children are born. This way, you’ll have 18 years to make the money grow from your own contributions, as well as interest.
2. Save checks.
When your child gets checks for their birthdays or other occasions, put those checks in their college fund. It adds up over time, and helps a lot more than you might think. It also makes the kids feel good because they feel like they are contributing.
3. Encourage your kids to save as well.
Paying for your child’s college education should not be solely your responsibility. Your child should save just as you are. It’s important for them to learn about savings, and having them contribute to their college is a great way to do that.
4. Take advantage of 529 plans.
529 plans are specifically used for college, so all you have to do is decide which type of account is best for your child. Savings 529 plans allow you to put your money into them to use for your child’s college education when it is time for them to go. Prepaid 529 plans allow you to choose a college for your child and pay tuition now for them to attend that college when they graduate from high school.
5. Remember that scholarships and grants aren’t guaranteed.
No matter how well your child does in school, scholarships and grants aren’t always available. So hoping to rely on extra money from those avenues isn’t the best way to plan for your child’s college fund.
6. Check out FutureAdvisor.
FutureAdvisor has a program called Diplomas Without Debt that helps you figure out approximately how much it will cost for you to send your kids to college and how much you need to save. They have their advisors that work with you to decide which accounts are best for you to invest in for your kid’s education.
7. Save as much as you can.
We all have other expenses that are more immediate and may seem more urgent than college education for our young children, but don’t put your child’s education on the back burner. It is important to continue to make constant contributions to their 529 or other savings plan you use for them. The more you can save now, the less you have to worry about it later.
The most important thing to remember is that your kid’s education is important and expensive, and they can’t do it without your support. They need you to believe in their future and to invest in their future just as much as they need to invest and believe in themselves. Start saving for them while they are young, and you’re off to a great start!