Statistics show that it
costs more than a million dollars to raise the average middle class kid. That
is no small change - how are you supposed to actually save for college or
whatever comes next? Don’t forget that
saving for your child should be in conjunction with saving for your own
retirement given that there are ways for your kids to get college money through
scholarships, financial aid, loans and other sources. Are you intent on
building up the college savings? There are some smart ways to do it.
Start now It’s
never too early to start. According to CNNMoney, if you save $100 a month from the
time your child is born, when s/he turns 18, you will have banked around
$48,000.
529 plans
Most states offer 529 savings plans - a great way to invest in your child’s
future tuition. People besides parents can set them up, so it’s a nice way for
grandparents or others to help save for college. The plan has a designated
beneficiary. The savings can go towards costs other than tuition, such as
books and computers.
Stocks, mutual funds Have a professional help you to take some of the pressure off you.
Research grants, scholarships, etc. There are a plethora of grants and scholarships
available, even for things that may surprise you. Take some time to research
these and see if you can find something that fits your child and his or her
interests.
Things you can
do to help instill financial savvy in your child at a young age include:
Careful spending when they are young Teach your kids the difference between a “want” and a
“need”. Delay a purchase until they’ve considered if it’s something they need
to have.
Let them earn money Whether it’s pet sitting, chores, a retail job – if they earn money
themselves, it tends to hold more value and be more difficult to part with!
Save some Teach
the art of saving for a rainy day. It doesn’t mean they can never spend it, but
it’s nice to see savings build up.
With some smart savings and
investing, and a few tools to teach your kids the value of money, you can save
money for post-secondary education. The time will be here before you know it!
About the Author: Heather Legg is a writer who covers
topics from small business subjects to family living to car seat boosters.
1 comments:
My mom tries to teach my youngest brother about him investing in HIS future by helping with bank accounts etc and helping him get some part time jobs after school. It's important parents look after the kids as you say but also that they teach them to look after themselves - far too many kids (I'm talking teenagers) don't really...aspire. To anything. Except being famous. Which won't happen.
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