Tips for Saving for College
It's Never Too Early to Invest in Your Tween's Future
Saving for college is something parents need to think about earlier rather than later. If you are just deciding to start saving, here are some tips to help you out.
If you only have one child, then it may be easier for you to start saving for college. College is pricey and the price keeps rising each year. Even if your child attends a local state college, you can still expect the total cost to be well over $40-50,000 for a four year degree (calculated at College Board.com; actual costs will vary). Do yourself and your tween a favor and start saving money for college today. If you have no idea how to even get started, then here are some tips to help you.
College Savings Plan
As soon as possible, you should start some type of college savings plan. A regular savings account won’t earn you a lot of interest, but it is better than nothing. Start putting back whatever you can afford, even if it is only $50 a week or $100 a month. That adds up by the time your child graduates high school. Many banks also have college savings programs that will help you earn interest on the money that you do save. Talk to your bank or financial advisor for help. Check out College Savings Plan Network to see how this type of savings plan works.
Set Money Back for Gifts
Your tween will someday appreciate a cushioned savings for college. Why not add money to your child’s college savings funds for birthdays, Christmas or other holidays. Every little bit helps and if you put in $50 for your child’s birthday instead of giving expensive gifts, then you are really helping out. You can ask family members to do the same thing. Grandparents love helping with college funds, so ask them to do so.
Follow a Budget
It is hard to follow a budget, but having a budget can mean the difference between having enough for college and scrambling around at the last minute. Make a family household budget and stick to it. Anything extra that you have at the end of the month can go into your child’s college savings fund.
Encourage your Tween to Save
If you waited too long or fear you will fall short of your college savings goal, then encourage your tween to donate a portion of money he receives from gifts, odd jobs, etc... to his college savings program. He make not like the idea while he is this age, but when the time comes, he will be thrilled that he made such a contribution to his future.
College Prep Classes
Although your tween is too young to think about college prep classes, it's not too early to make sure he is making good grades at this point and developing the kinds of study habits that will carry through his high school years. Most high schools offer college prep courses (sometimes called Advanced Placement or CLEP). These will allow your child to test at the end of the year to “place out” of college courses such as freshman English, history or even math. This is a perfect way to save money on college because the more classes your child can place out of in high school, the more money you save on college tuition. (Reference: FastWeb ~ College Prep for High School Juniors by Tavia Evans and Kay Peterson, Ph.D.)
