Benjamin Franklin said, “If you fail to plan, you are planning to fail.” This can be true, especially in the approach of paying for college. Many parents simply don’t plan for college and paying for college doesn’t become a thought until it’s time to send your child off for their first year. Parent’s lack of planning and saving to pay for college often results in a large debt for students. Here are some tips on how you can save for college throughout your children’s life.
- As soon as your child is born, you can start saving in a tax-favored savings account such as a 529 account.
- Determine how much you need or want to save. The amount of money needed for college depends on many things, especially where they will end up going. Private schools can cost much more than state universities. Set a goal and map out a plan to achieve that goal.
- Set up automatic deductions from your paycheck. Each month, have a certain amount deducted from your paycheck and transferred into a planning and savings account. Once the draft is set up automatically, you will forget about it and this regular savings will add up over time.
- Start talking about college with your child early. Help them understand the financial obligations and costs that come along with college and any contributions they will need to make.
Planning for college is so important, and we encourage you to start now! Contact Gavin at Bogue Sound Financial for more help and advice on how you can obtain your savings goal for college planning.