It's Never Too Late to Get Started Saving for College
The best thing you can do is start
saving for college while your kids
are in diapers. But it's never too
late to begin. Even if you don't
implement your strategy until your
kids are in high school, you can
make great strides toward meeting
your savings goals. Here's how to
get started.
- Start a Mother’s
In-Tuition notebook to get organized. Clip
articles, begin to collect information,
make notes to yourself about
what you have found. Include
sections on how much college
will cost, information on colleges,
what scholarships are available,
financial aid.
- Figure
out what college will cost. In
2003-04 with the cost of tuition,
fees, and room and board for
four years at a private university
averaging $108,000 and state
school costs averaging $42,000
for four years, it’s no
wonder mother’s
are in a cold sweat. And when
your preschooler is ready for
college in 2021 the costs will
have more than doubled (projections
show $260,000 for private school
and $100,000 for state schools)
- Do
a budget to see what you’ll
be able to afford to pay each
month. Perhaps
you can cut back for a while
in some areas to put every spare
cent into your college fund.
And don’t forget, you don’t
have to save your entire college
stash in advance. While junior
is in college, you can devote
part of your income each month
to paying for college costs.
- Figure
out what other sources you
have to pay for education. Will
your child be able to work
part-time? Are grandparents
able to help out? Is your child
saving for college? Can you
borrow from retirement plans
or home equity? Is your child
a star athlete or superior
student who will qualify for
scholarships and grants?
- Now
figure out how much you need
to set aside. Use
the Save
for College Calculator at VISA USA’s education
website Practical Money Skills.
It’s located on the bottom
right of the page, along with
other helpful calculators.
- Start
stashing cash for college. Where
do you put that cash? There’s
an alphabet soup of options
available: IRAs, UGMAs, Coverdell
ESAs, 529 plans, Qualified
US Savings bonds. Click
here to read about the options.
- Check
out financial aid. Learn
about financial aid through your
school’s financial aid office. Practical
Money Skills has information
about financial aid at .
It’s a great place to start
exploring.
- Join the Club. At the Money Club, explore the Education Planning Money Zone. Join with other parents and friends and use the Money Club resources to move forward in your journey. Amazing things happen in Money Clubs!
At WIFE we welcome your comments. Please feel free to contact us.
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