Every parents want the best for their children. You work hard to make both ends meet in order to ensure that you are giving them the best future possible.
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Because your child’s future depends on you, you should aim at giving them a good education. To get off to a good start in preparation for your children’s college education, be sure that you make it a part of your financial savings plan. Here are several ways you can save for your children’s education so you and your children can live a life that is debt-free and far from stress- as far as money is concerned, at least.
1. Start saving early
Cramming is never a good idea, and procrastination can be the most serious sin you can commit when planning for your children’s college education. Take this advice from nationally renowned financial guru, Dave Ramsey:
“Regardless of how you save for college, do it. Saving for college ensures that a legacy of debt is not passed down your family tree. Sadly, most people graduating from college right now are deeply in debt before they start. If you start early or save aggressively, your child will not be one of them”
2. Figure out the net cost
Are you planning to send your children to a public or private university? Before deciding, keep in mind that a higher cost does not necessarily mean better quality. Determine which institution will more adequately meet your children’s needs at a price affordable to you.
When figuring out the cost of colleges, take a look at the actual out-of-pocket cost for each school and not the sticker price. Overall, private colleges can be more expensive than in-state colleges. While both offer scholarships, most private colleges offer better financial aids than public universities.
3. Let your children know about your savings plan
Get your children involved early on in the saving process and make them understand how you are planning to save for their future education. Teach them the importance saving and help them develop a good saving habit.
When planning for your children’s future education, don’t get fooled into thinking student loans are the only option. The key is to start saving early and regularly. Have you started saving yet?
