Start Saving for College Now
College costs are rising every year. Statistics show over the past five years, tuition and
fees for public colleges have risen dramatically. Families that plan ahead will be better
positioned to handle the expense. Advanced planning helps families in two ways: they get
"more bang for their buck" and they can hunt down opportunities for financial
aid.
Parents should start accumulating funds for their children's education as early as
possible. Every dollar saved, not to mention any earnings, puts their children one step
closer to a college degree. Starting early also cuts down on the amount your kids need to
borrow as college draws nearer.
To help you get started in your college savings plan, ask yourself these questions...
Ques. I have "X" number of years before my children are ready for college - what is the best way to save?
Ans. The number of years you have left is important in determining the type of strategy you'll follow. If your children are just a few years from college, you'll want to minimize the financial risk. If you have five or more years to save, you have more choices available. The bottom line - the earlier you start, the more savings and investment options you'll have - at less effort and sacrifice than those who wait.
Ques. What types of savings and investment options are available to help us meet our goals?
Ans. There are many ways to start building your child's college education fund: Mutual funds, Life insurance, Annuities, Bonds, CDs, Stocks . There are advantages to each option. You need to consider the amount of risk you're comfortable with and the rate you expect to earn and the number of years you have to college. A diversified strategy is often the best solution.
Ques. What kind of financial assistance is available?
Ans. Financial aid comes in a variety of forms - scholarships, grants, loans. Scholarships often go to families with lower incomes. Loans, too, may depend on the family's level of financial need. There are no guarantees of receiving financial aid. That's why it's smart to start early and include a variety of options in your planning.
Choose a Successful Strategy and Start Early
What are the primary issues to consider when accumulating money for college? A successful
strategy should: Accomplish multiple goals, Provide tax benefits, Allow you to overcome
uncontrollable circumstances
Regardless of the solution you choose, start early. This is particularly true with life
insurance, since cash value growth is typically more dramatic after ten years. In general,
there are fewer viable alternatives when college enrollment is just around the corner.
Armed with strong financial products and adequate preparation, you can look college
funding in the eye. Your planning will be personally rewarding as you pave the way for
your graduate's bright future.
