Saving for your child’s college education is extremely important. It may be more important now than ever. A college education is a prerequisite to today’s high paying fields. The question, though, may be easier asked than answered. How will I pay for my child’s education? Do not fret over this because it is a question that many parents are asking. Saving for college shouldn’t be as difficult as it seems. The truth is that many parents will start to save for college at a later date in their child’s life. The key is to start saving early. How early? It depends on your situation. Putting aside a small each month will add up over time. Also, another question that should be asked is where exactly to do you want to send your child to school. Saving for a private education will obviously cost more than a public one.
Saving for your child’s college education will take time and money. You will need to systematically invest each and every month in an investment vehicle. One such vehicle is a college savings 529 plan. Each state usually has one and upromise.org also has their version, which is excellent. At upromise.org you can even save for your child’s education by buying things you already use or eating at restaurants that you already visit.
You will need your money to grow steadily. This means that exposure to the stock market will give you high returns. Again, how much depends on you but the younger they are the more exposure to stocks will be required. If the child is older, then investing in safer liquid investments such as bonds, certificates of deposit, and money-market funds will be appropriate. Do not put too much capital in “safer” investments because money will not grow as much. You’ll want it to grow as much as possible.
The key is to start saving as much as you can in a systematic fashion. In the resource section are additional websites with more information. Use them. Start planning now because you might regret it later. More information can be found at websites such as www.upromise.org, your state’s 529 college plan, www.finaid.org and www.collegesavings.org.
