One of the most daunting tasks for both parents and students is to save for college. Some families end up using money that was meant for savings for college on other short term emergencies. Not everyone can go to school on a scholarship or grants so they have to start saving early for college. The sad part is that the college fees are on the constant rise. It is imperative that you start saving for your children’s school from the time they are born so that you don’t put a financial strain on your family by saving for them late.
Savings for college should be a top priority for parents almost as important as the basic human needs. No one wants to be in debt so that you can take your children to school. The earlier you start saving the better.
Below are some tips on how to save money for your children’s education.
- Set a target. Open an account or write somewhere the title savings for college account. You need to set goals and estimate how much money will be needed for your child to go to school.
- Start early. The earlier you start the less you will have to put aside later. Just put small amounts little by little, over time it will amass to a lot of money. It is harder to save large amounts of money for a short period than saving small amounts for a long period.
- Reevaluate your spending. No one is suggesting that you eat one meal per day or live under a bridge but you should cut down on frivolous spending like frequent holidays.
- With money already going to your savings for college account, you should save the extra income that comes from a salary raise. Think of it in a way that you will be done saving for college sooner than you had planned leaving you relaxed.
- When you are setting up your savings for college plan, you should let the bank automatically withdraw a certain amount into a specific account that you will not be able to touch. This is much easier than manually putting away cash because it requires a lot of discipline and there might be days where you over spend your monthly income.
Setting up a savings for college plan is the easiest part when starting out. Sticking to the plan is when it becomes extremely difficult. Follow the above steps and you will find the process a little less difficult.
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