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5 Unique Tips For Financially Preparing For College

Dec 24, 2016

A common goal that many parents have is to save enough money to put their kids through college. However, since the cost of college is rising so fast, this can seem like a big challenge to many people.

For those that are looking to send their kids to college, here are five unique tips to follow that can help you save money and better prepare for your child’s future education.

Estimate The Cost


The first tip for financially preparing for college is to properly estimate the costs of the education. Many studies today believe that college will cost significantly more in the future. By the year 2030, college could cost over $100,000 at private schools every year and state colleges could cost over $40,000. 

When estimating the budget, you will also need to factor in other expenses such as commuting, living expenses, and spending money. Make sure that you really take the time to sit down and really figure out how much college is going to cost you.

Set Goals


Another tip for saving for college is to set a goal for what you would like to provide your kids. While paying for the entire education may be a goal, it can be impossible in some cases.



However, you should set a goal for a certain percentage of the education that you want to cover. Based on this, you will be able to figure out how much you have to have saved before your kids go to college.

Start Early


The most important tip that many parents should follow is to start saving as early as possible. While 18 years may seem very far away, the years will go by very quickly and you can miss out on a lot of compound interest if you do not start right away. 

Ideally, you should start funding the college savings account right after they are born.

Investment Strategy


How you invest the money is just as important as how much you save. Many experts agree that your investment allocations should change as the child approaches their college years. 

When the kids are young, you should focus on investing largely in stocks and mutual funds. However, when they are approaching the college age, you should re-allocate into a more conservative mix.

Other Financing Options


As your child approaches college, you should start looking more into scholarships and student loans. Many colleges, local communities, and private ventures have scholarship programs that could help reduce your cost. 

Furthermore, most schools, including UC Clermont College, have financial aid offices that can help you receive grants and loans.

In conclusion, paying for college for a child can seem like a daunting task. Luckily, you can just take your time and save over the years. Just be sure to follow these five unique tips to help make sure that you are as financially prepared as possible.

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