For most parents, being able to put their children through college is a top priority. College degrees can open many doors for a young person, and are increasingly more important in today’s competitive economy. However, that diploma may cost more than you think. Unless you’re independently wealthy, you’re likely to have trouble paying for college. To avoid it, hire a wealth management assistant and start saving as soon as possible.
College Costs in the Future
For the academic year 2013, the average cost of a four-year, in-state college education was just over $22,000. For an out-of-state college student, it is a little over $35,000. These figures include tuition, fees, room/board, supplies, books, transportation and expenses. Costs are expected to keep rising, and rates continue to vary between private and public schools.
Paying for Education
Every year, thousands of students finish their schooling – and because most parents don’t save enough to pay for 100% of the bill, how do they do it? In most cases, parents save enough to put a deposit on the bill, and at payment time, that deposit is supplemented with student loans, current income, investment proceeds, gifts and savings.
Saving for College
It’s important to put as much money as possible into a college fund for your child. The more you save now, the less you’ll have to borrow in the future. Estimate the cost of a four-year degree, and decide how much of that amount you want to pay. To meet the goal, ask a financial planner to help you decide how much to put into the college fund every month.
The best time to start saving for college is as soon as possible after your child is born. New parents are under a heavy financial burden, and many have student loans of their own – but financial advisors will tell you that it is the right time to start saving. You’ll have the time to find investments that will grow faster than the tuition rate, and with those investments spread out over a longer time, your savings will add up quickly. Talk to your financial advisors for help in putting together a college savings plan worth following.