If you are a parent of a newborn or child, you’ve probably heard the large depressing amounts of costs that would be put in when your child starts going to college. For parents who just have newborns this thought must be a little far off but trust me when I say this, these things really need major finance advance planning. The cost of college now a days is super expensive specially when it’s a private one.
The same way you should begin savings for your retirement in your twenties, you should begin saving for your child’s tuition sooner rather than later if financing their higher education is one of your financial goals.
1. START RIGHT AWAY
The sooner you start investing in your child’s education, the better it is. The earlier you start , the less you will have to save in the long run. Also, in the following scenario The Nationwide Debt Reduction Services can help, this Scholarship was created to help students and their families avoid racking up massive amounts of debt in order to obtain their desired degree
2. FOLLOW A PLAN
The first step to initiate the above would be getting a estimate as to what would be the total cost of your child’s education. While we know that the amount would be too huge, apart from saving there are other options like scholarships too that can help.
3. SAVE REGULARLY
In order to save a massive amount for almost 3-4 years of college, you not only need to start saving early but also need to save regularly. Rather than investing a lump sum amount every year, consider saving a smaller amount every month.
4. INVEST WISELY
The thing that is scarier than not saving is actually putting money in the market. YES, it is something that almost everybody follows but it is risky. Investment should be done with a lot of personal research and knowledge.
5. THINK SMART, ACT SMART
In the outside world today, a lot of people, brands, companies will reach out to you, wanting you to invest in them. It is not always a good decision to trust any of these blindly. Everything has pros and cons. Blindly investing anywhere might lead you in a debt situation. Here too, one can get great help with debt reductions. But the best would be not to land in the following situation.
These are few of the ways that can be helpful to you, while you plan saving up for your child.