Contrary to popular belief, saving money is still a good way to finance your education. Sure you can still apply for grants, scholarships, loans, fellowships and the like, but if you have money already in the bank, why not use it? Now I know just as well as you do that the average American can't hope to save the total amount that it would be on average to attend a four year institution, but bear with me, as I try to explain how and why you can save a good portion of that total.
First off, it's never too early to begin to put money away for your children. My husband and myself have twin girls that are four years old, and we've been planning for their college education from birth. Never set low standards for a child to achieve, for they will surely achieve low standards. Luckily for we parents that have small children, there are savings programs commensurate with our individual financial situations. Allowing us to not only plan for our children's future, but begin to finance that future as well.
Let's take, for example, the newest form of savings investments for college, the Education IRA. This fund works a lot like an adult's IRA plan, used for retirement. No taxes, no extra fees, but you should shop around to get the best compound interest rate, as I recommend shopping around for all loans or savings plans. This plan, in particular, is one of the better ones, simply because it allows you to squirrel your money away, safely at a good interest rate for a long or shorter periods of time. And, in my opinion, having no taxes imposed on it certainly doesn't hurt. You can look into education IRA's over the internet, using almost any search engine (my personal favorite is Alta Vista) and going to the Business and Finance Channel. In that channel you will find a variety of banks offering a variety of services, all from which you can pick and choose at the touch of a button.
In keeping with the spirit of saving, let's consider how much your family is able to put aside on a monthly basis. The easiest way to do this is to sit down with your parents, (or whoever is responsible for your finances) and draw up a budget. This budget should list first, all monthly income (net is usually better to list than gross) then subtract all of the "normal" monthly expenses. At the bottom of the page, balance your out going funds against your incoming funds, and decide what you can put away toward a savings plan. For many of you, it could just be $20.00 a month that your parents can afford, in which case (if you are of working age) I would suggest an after school job. There are plenty of places hiring teens that pay well over minimum wage, and you do need to consider that it is your education, after all. So you need to be responsible for it as well. Now you probably won't be able to save all of the money needed to pay for four years of college. That's okay, the money you do put away will make life easier for some expenses while your attend college, and it can reduce your stress if you have to take out a student loan, or other type of college financing program.
Go To Page: 1 2
The copyright of the article Saving For College....Still Worth It! in Financial Aid is owned by . Permission to republish Saving For College....Still Worth It! in print or online must be granted by the author in writing.
