How to Start Saving for Your Child’s Education Now
A quality education is necessary to succeed in the world today, and a high school diploma is no longer enough. Entry level positions in many industries now require a college degree, which will make it increasingly difficult for those without university education to find exciting careers. At the same time, unfortunately, the cost of education has continually risen over the past several years–and it shows no signs of falling back down. Students who don’t win scholarships are faced with thousands of dollars in tuition every semester that can quickly put them in debt. Invest in your children’s future by saving for their education now.
You should start saving for your child’s education as soon as possible. It’s never too early to start saving, but it will one day be too late. Even if your child is only in kindergarten, start saving for the future as soon as possible. Take some time to examine your household budget and figure out how much money you can afford to save each month. Don’t get discouraged if there isn’t much room for a savings plan in your budget. Even a small regular savings of a few dollars per month will add up quickly over time, given the right investment strategy.
Once you decide how much you can afford to save, you’ll need to think about how you’re going to store this college fund. A standard savings account is the first choice for many parents, but this may not be the best option. This is because regular savings accounts will detract from your child’s eligibility for federal financial aid when they apply for college. One option you should consider is a 529 college savings plan. These accounts are tax-deferred and offer investment options as well. Best of all, money saved in a 529 account will not affect your child’s federal government financial aid.
Bring the rest of the family in on your savings plan as well. Treat this college savings fund like a family scholarship in which everyone can invest. A deposit in your child’s college fund would be the perfect birthday or holiday gift–much more useful and beneficial than new toys. The children themselves could also become contributors. They may be too young now, but when the kids get a little older and start working, they can put their own money into the college savings. College funds bear the most fruit when they become collaborative efforts.
There are numerous education resources you should look into in the years leading up to your children’s college applications. Look into the information at GetaRealDegree.com to learn more about online education, an increasingly popular means of obtaining a degree. Educate yourself as much as possible on the various options for college–information can be as beneficial as money in helping your children make their way to college. Give them only the best by starting to plan and save for college as soon as possible.
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