Saving for your child’s college education isn’t as hard as it seems. Read on to discover how to save for a child’s college without any stress.
College isn’t just any investment, but it’s possibly the most expensive one that a young person will make. According to recent statistics, the average amount of debt that a college student will have after taking out loans is over $28,000.
As a parent, you will want to do all you can to make sure that your child doesn’t become so far in debt that they can’t pay the bills. To ensure that a child’s future stays smooth and bright, many parents help their sons or daughters pay for higher education.
If you’re one of these parents, you’re probably wondering where you will come up with that kind of money. Luckily, saving for your child’s college is so much easier than you might think! Here, we will tell you how to save for a child’s college and learn some ways that you can wrack up enough money to send your baby to the school of their dreams.
1. Know How Much You’ll Need
Before you can start saving, you will want to know roughly how much you will need for your child’s college education. There are factors you won’t know when they’re little, like what field your child will go into or how inflation will affect the economy in ten years. Still, you can use current data to make an educated guess.
Figure out how much you think college will cost and create a budget plan. Allocate a little money from each paycheck towards a college fund for your child. In the same way that you budget for grocery and rent, make sure not to dip into this cash and spend it on frivolous things.
2. Start Saving Early
Beginning to save early is essential to wracking up enough funds to send your kid to college. While you can’t go back and start saving earlier than the present, you can make every moment count from here on out.
If your child is still young, you’re lucky! Beginning to save now means that you aren’t going to need to set aside too much from each paycheck, and it also means that you have more time to create a plan. Don’t put off saving- you’ll regret it in the future if you do!
Still, if your kid is a little older, it doesn’t mean that all hope is lost. On the contrary, if you start saving now you’re still going to be able to help your child with their education. Plus, there’s a bright side to starting your fund later- you’ll have a better idea of how the economy and expenses look.
3. Set Aside a Percentage
The best way to set aside money for your child’s college education is to budget a certain percentage of each paycheck and stick to it. Using percentages ensures that you’ll be doing all you can even if you get a raise of a new and better-paying job in the future.
One word of warning: don’t allocate a higher percentage than you can afford! You still need money to pay the bills and your living expenses. It’s better to only set aside what you can afford than to be struggling in your day-to-day life. You also won’t have to dip into the college fund to get money for groceries, which would set a dangerous precedent.
4. Use Websites to Help You Save
Saving is hard, but there are websites and apps out there that can help you save and budget! Resources like Moneybanker and some cell phone apps will inform you of not only how much you’ve saved so far but can do the math and tell you what you can afford to put aside now.
5. Talk to Your Child
In the end, it’s important to remember what you’re saving for: a bright future for the child you love with all your heart. This is a surefire way to make you feel motivated to set that money aside. This doesn’t mean that all the burden should be on you, though- there are also things that you need to talk to your child about before they go to college.
First and foremost, encourage your child to look for scholarships. Scholarships are easy to apply for and can get you a lot of money if you look hard enough. They also offer scholarships for all sorts of strange things in addition to merit scholarships and ones for doing well in extracurriculars, so there’s no excuse not to apply.
Another thing to discuss with your child is what sort of program they want to go into. If they want to go into a STEM field, the price of college is going to be much different than if they want to go into literature or law. Knowing what your child’s dreams are will help you save… and help you bond, too.
Know How to Save for Child’s College
We aren’t going to lie: when money’s tight and stress is high, saving for your child’s education can be a daunting prospect. Fortunately, though, knowing when and how much to save, using the right resources, and talking to your child can make it easier.
Now that you know how to save for child’s college, head over to our page and click on the ‘news’ tab to learn more about the economic climate! We’ll tell you about what’s going on in the world so you know what you need to know in allocating your finances.
I’m a single mother of 2 living in Utah writing about startups, business, marketing, entrepreneurship, and health. I also write for Inc, Score, Manta, and Newsblaze