A college education can be costly, and therefore, it is important to start saving early when it comes to college. Parents want to provide their children with an education that does not leave them with the burden of loans. On average, tuition and college fees can range from $10,116 for an in-state public university to $22,577 for an out-of-state public university to $36,801 for a private university. Considering tuition is becoming expensive each day, you can start saving today for your child’s college education. Here are some tips on how to save for college:
Keep a balance between college saving and your retirement
You should consider balancing between your retirement and saving for your child’s education. It is important to do what you can to save for your child’s education, but it is important to prioritize your retirement. Consider the 529 college saving plan, which offers financial aid and tax benefits. Most importantly, the 529 plan can grow federal tax-free, and if you use the money to pay for college, it is not taxed.
Plan early and have a target
It is important to set a realistic goal and have a college saving plan earlier enough. With a target you are working towards, it will be easier to save. If you have a goal, then it will be easier to be aggressive towards that goal. For those parents who plan early and save their children are likely to finish college with less debt.
Taking advantage of grants and scholarships
You can encourage your child to take advantage of opportunities such as national, regional, and local scholarships and grants to support your savings. You can research available scholarships to see if your child qualifies. Several college scholarship websites offer different grants and scholarships.
Consider cheaper college options
It is important to consider less expensive options when evaluating college choices. Usually, local state universities offer less expensive fees, and they are very competitive academic wise. Although this might not be the first choice of your child considering the burden of college tuition and fees, this option could come in handy.