home loan finance blog
Every parent wants his or her kids to be successful. Most parents believe that for their kids to be successful they need to go to college. College is expensive, but so far away that its hard to think too much about the costs. Lets take a quick look at the costs of college.
2004 2005 4 years of public college – $45,000
2022 2023 4 years of public college – $114,101*
* Estimated from 529s.com
Without proper planning these costs can be a financial time bomb. What are some ways to save for and pay for your kids future college costs? The first step is to start a college savings plan, also known as a 529. A 529 offers tax-free growth and if used for college the distributions are tax-free. Establish an automatic investment plan that deposits a predetermined amount every month into the fund.
The next step is to register with grocery reward programs that contribute to future college costs. Many of the manufacturers today participate in college rewards. To learn how to sign up, visit: 529s.com/Saving-For-College
By the time your child is a freshman in high school its time to start examining loan, grant and scholarship options. If he or she plays sports or music there is a chance they can qualify for some kind of scholarship. Most high schools now have a career / college advisor that you should meet with and review these options. For a review of federal help, visit Federal Student Aid Be sure to read all the terms of the loans that you are offered. By saving now you can reduce the amount that you need to borrow later.