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Starting a college fund for your children is absolutely one of the best things you can do as a parent. It allows them the choice to go to college with minimal stress and worry about student loans, and it also sets a great example for how to save money for the things that are important in life. Additionally, it puts education importance in the back of their mind, and gives them a reason to strive to do well in school to continue on to college. Following these tips to start a college fund for your children will surely be a great thing, and once you get the hang of it, it gets pretty easy!
How To Start A College Fund For Your Children
1. Decide when you want to start. This step is crucial, as it will determine starting point, ending point, and how much you plan to save each year based on time. If you start a college fund for your children as soon as they’re born, that gives you roughly 18 years to save, meaning you’ll be able to save a lot less at a time, and ultimately this makes it much easier.
2. Look at current tuition prices. This is something that will make deciding how much you need to save much easier. Although as most people know, college tuition seems to skyrocket every year, so you’ll want to tack on a bit more to the total, but it gives you a good baseline for how much you need to save when you start a college fund for your children.
3. Be dedicated. Of course saving money isn’t always an option; things come up, life gets rough, and sometimes you just can’t swing it. Note that it’s totally okay to miss a month or so if you can’t financially do it, but try to get right back on track to your savings. Make it a habit and a priority so that you can achieve what you want and ultimately reach your end goal. Your children will thank you, and once college rolls around, your bank account will thank you too. Since you’ll have saved up already, there won’t be a huge chunk that you’ll have to help with all at once!
Discuss it with other family members. Often times, grandparents love to help out with things like this! If they’re wanting to make financial contributions for birthdays and holidays, see if maybe they’ll consider putting some of it towards a college fund for your children! Additionally, if your child is graduating high school, and most people are wanting to give money as gifts, think about setting it aside for dorm room decorations or school supplies for college like a laptop. This is a sort of different college fund for your children, but still important!
Ultimately, it’s up to you to decide whether you want to save an entire tuition’s worth of funds or just a small amount to help lessen the burden when your child goes off to college, but these tips will make it much easier!