Today many families are struggling to pay for their child’s college education. How much an education will cost will depend on the school. Today for a four-year degree at a public school it can cost on average about $40,000 dollars. In addition you can add an additional five percent every year towards inflation. Many families don’t think about the financial cost till the time arrives for their child to go to college. Loans are fairly easy to get but paying them off could take many years. Once the student has graduated they are working for years just to pay off those school loans.
Financial preparation starts from the time your child is born. There are steps a family can take to ensure that the child is financially ready to go to college.
Open up a college saver fund. A fund dedicated just for your child’s education is essential. This will prevent the money exclusively dedicated towards college from being used for another source. This will also help you get interest off the money you have invested. After a few years I would suggest putting the money in a more aggressive account such as stock funds. This way the growth of your money will be greater.
Place any change you have in your child’s piggy bank. Any change you get from spending automatically put it in the piggy bank. You would be surprised as to how much money you can save. The change really adds up and adds up quickly. Once the piggy bank is full you can deposit the change in the college money account.
Every month donate a percentage from your pay heck to the college fund. Just as you would budget for your bills add a budget for your child’s education.
Ask extended family members to donate money to the college fund. Even if it’s just a few dollars from every member it still makes a difference. The donation can help add more interest in the college fund account.
Involve the whole family in a fun money making project. The money collect can go towards the college fund. Some examples are: collecting cans, having a lemonade sale or a garage sale.
Encourage your child to donate a percentage of what they earn from chores and / or job into the college fund.
Research scholarship opportunities. There are different programs that can give your child money towards their college education if they are qualified. Scholarships are a wonderful source because you don’t ever have to owe them money that you receive. Go to your local library. The library should have a book that lists all the different types of scholarships that are available.
You will be successful in saving money for your child’s education by starting early and making it one of your primary goals.