Whether you’ve just welcomed a bouncing bundle of joy into your home or you’re sending your firstborn off to kindergarten, it’s never too soon to start thinking about your child’s college education. You don’t want to wait until your child’s 18th birthday to stare down the heavy price tag of a modern college education. Unfortunately for today’s parents, college tuition, room and board, and textbook prices are projected to keep increasing in the future — meaning you don’t just have to save for education; you’ve got to save for inflation as well. Here are some tips for saving for your child’s education.
- Start now. Choose a monthly amount and put it away with no exceptions. Force yourself not to touch that money and learn to live without it.
- Teach your kids about savings. Most parents, especially those with more than one child, aren’t able to provide college educations on their own. Loans and scholarships are essential ingredients of a modern college education. However, teaching your children to be fiscally responsible means that they’ll have an easier time paying off their student loans and saving for college expenses later. Consider having your teens or college students use a prepaid card to learn about responsible money usage without fear of overdrafts or large banking fees.
- Don’t sacrifice your retirement. We all want the best for our children. However, every financial planner in the country will tell you to look after yourself first. This may seem selfish to a loving parent, but the truth is that there are tons of sources for education funding — but there are no scholarships for your retirement.
