Multiple Kids & Saving for College
What To Do When You Have to Save Twice as Much for Higher Education
It's hard enough when a family is planning to send one child to college. So, how do families save when they have multiple children? Here are some tips to get you started.
Kids are expensive, and have you even thought about saving for college yet? It is estimated that in as little as 10 years, a 4-year program at a public university could run you up to $80,000 per child. So, what do you do if you have more than one child that will attend closely together? If your children are in the tween set, it is definitely time to start putting back for college now. Here are some helpful tips that will get you started today.
Start Saving Early
The first and best thing you can do for yourself and your kids when it comes to college savings is to start putting money back early. Some parents even start saving before they have kids. While that is not always an option for everyone, you can start putting back as soon as you can. Even if you don’t have a lot of spare money to save, every little bit helps. Putting back only $50 a month from the time your baby is born will get you $20,000 by the time your child is 17. That amount doesn’t include interest if you invest that money.
Look Into Investments
If you have never tried investing money, now might be the time to start. There are many investment opportunities that will help you "grow" your money to save for college tuition, which is especially helpful when you have more than one child that will attend college close together. Stocks are popular investments, as are mutual funds. It is very important that you get investment advice from a reputable company. Talk with your bank to get some good referrals.
Ask the Family to Pitch In
When you have two or more children and are worried about the rising cost of college, ask your family to help. You can be sure that grandma and grandpa will be more than happy to invest in their grandchildren’s education. Start a savings account and ask them to add to it for birthdays, Christmas, or other special occasions. Every little bit adds up, and that could mean a lot to your children by the time they enter college.
Encourage Community College
You want your child to succeed, so why not encourage your children to first attend a community college and then transfer into a four-year program. There are several advantages to community colleges. First, they are local, so your children may be able to save living expenses and stay at home. Next, they are much cheaper and you could save a lot in the long run. Last of all, your children can get many core courses completed before enrolling in a four-year program. Students can get a taste of college life without being so independent. This is often the best choice for families that have several children.
The bottom line is that when you have children, you need to do all you can now to put away for your child’s education. It is never too early to start preparing.
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