A college education is expensive. The more you save now, the less your young adult will have to pay off in student loans - which can take years.
Difficulty: Average
Time Required: a lifetime
Here's How:
- Use an online calculator to see how much it will be to send your child to college.
- Decide if you will be sending them to a public, private or community college. Public colleges are less expensive than private. Community Colleges are the least expensive.
- Begin saving immediately.
- Decide whose name the savings will go under. If you place it under your child's name in a bank account, know that they can use it for anything once they turn 18.
- Consider an education IRA. Benefits include less taxes.
- Decide how much you will contribute to the fund a month, then make that payment to the fund first, before anything else.
- If your teen has a job, require that they put into the fund also.
- Do not touch the money for any reason, you'll thank yourself later.
- Consider a mutual fund, but don't gamble with risky stocks.
Tips:
- Ask for bonds for birthday & Christmas gifts for your child from friends and family.
- Do you expect to pay for your teen's college degree?
Parenting Quizzes for Parents of Teens
