You might not be thinking of college when your newborn arrives, however, the sooner the better when it comes to being prepared and Saving For College Tuition you’ll need for their education.
Whether your child is planning to go to a state university, a community college, or an Ivy League School, college prices are rising and will probably continue to rise until your child(ren) head off to school.
How To Start Saving For College Tuition
If this is you, and you’re thinking of the costs and how much you’ll need to pay for college, you should start saving now. Easier said than done, huh?
Using the strategies below will help you feel more secure about your child’s future and that you’ve been Saving For College Tuition and are set by the time they need it.
Talk To Your Child
Start early talking about college with your child(ren), let them know that you are planning their college education.
Raise them up knowing that college IS in their future, you want them to know from a young age that school doesn’t end when they graduate high school. As they enter high school and even before discuss their dreams, goals, and ideas about their future.
Be honest about your financial situation. Let your child be aware of how much college may cost and how much the family can afford to contribute. Discuss Saving For College Tuition, scholarships, and student loans, if necessary. Help them be prepared for what lies ahead.
Include College Savings In Your Budget
Instead of taking out a huge chunk of your savings to send your child to college, plan ahead and include college savings in your budget and financial goals.
But, don’t put your retirement on hold or in jeopardy to pay your child’s college tuition. There are scholarships and student loans that can be used to supplement the college bills. There are NO scholarships for retirement, so, be sure to make that a number one priority
To learn what is reasonable to save for your family, you can use this free College Savings Calculator and work with the best college savings plans to get your fund going.
It’s never too late to get started. If you start putting away $50 a month when your child is 10 years old, you can save up to $6,400 by the time your child heads off to college.
Start Saving With A 529 Savings Plan
Opening a savings account with a 529 Savings Plan can help you in your Saving For College Tuition for your child’s education. It’s available in all states and for anyone to set them on their path to college.
According to the U.S. Securities And Exchange Commission:
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.
The 529 Savings Plan is federal income tax exempted, as long as you use it to pay for tuition or housing.
Get A Roth IRA
Like a 529 Savings Plan, a Roth IRA is a tax-advantaged retirement savings account that you can use as college savings.
If you contribute $5,000 a year into a Roth IRA for the next 10 years, up to $50,000 will be available tax- and penalty-free to fund a student’s higher education, for example. Unlike a 529 account, money held in a Roth IRA isn’t used in evaluating financial aid
If it so happens that your child does not go to college, you can use the funds for your retirement.
Have Your Child Do Their Part In Saving
Be sure to discuss with your child what their part in saving for college will look like. You can work together to come up with different ways to help save. Your student can apply for scholarships or save part of their earnings from a summer or after-school job.
It is important to teach your child the importance of saving money and what their responsibilities are before and after going to college.
Ask Your Family And Friends To Contribute
One of the easiest ways to save money for your child’s school expenses is to ask your family and friends to contribute. Many close friends and family members would love to know they are contributing to your student’s education, don’t leave them out!
Instead of asking for birthday or holiday gifts, you can ask them to contribute to the 529 savings plan instead. You can also request gift cards from Leaf. These gift cards can be redeemed directly towards your 529 savings plan.
LEAF education gift cards are the thoughtful way to save for college that really matters. Your gift flows directly into a child’s 529 college savings plan – and LEAF supports all plans!
LEAF gift cards can be purchased and redeemed within minutes through our website. Our gift cards are perfect for baby showers, children’s birthdays, toddlers, teenagers, and last but not least, their parents.
Encourage Your Child To Apply For Scholarships
As your child fills out his or her college applications during high school, encourage him or her to apply for scholarships, too. Your child does not need to be a straight-A student or eligible for awards as there are different scholarships available.
You can also look into different financial aid options. Your child can fill out the free Application for Federal Students Aid or FAFSA. It’s a gateway for grants, loans, scholarships, and work and study jobs.
The FAFSA is a free online application for financial aid eligibility for college. It’s used by schools to put together your federal student aid package. This package can include grants, work-study, federal student loans, and even state and school financial aid. Sallie Mae
Financing your child’s college education may be a tough call for your family’s finances, but, the earlier you begin saving, the less money you’ll need once your child starts his or her journey into higher education. Know what your priorities are and come up with a sound plan, sooner rather than later.
Do you have advice for helping save or fund a college education? Please leave your comments below.
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