Saving for College: Planning for your Child's Future
Not everyone can count on a grant or scholarship and students who have to work full time to pay for school are more likely to drop out or earn poor grades.
Educational planning involves more then just making sure that money is set aside for school. It involves knowing exactly what career path is right for your child and then deciding where exactly that quality education can be obtained. What kinds of decisions need to be made now, in order to be prepared for the chosen career path?
A general idea of what kind of schooling will be needed is important along with researching the tuition rates at possible institutions that your child could attend. Then take that information and see your financial planner for assistance. A good financial planner is going help you determine how much you need to save now in order to be able to pay what the tuition will be when your child is ready to enroll. Most financial agencies take an average for a broad number of colleges and universities across the country and how their tuition prices have increased over several decades in order to come up with a trend. That trend is then used to determine the approximate amount that should be saved. The great thing about educational planning is that not only are parents able to ensure a quality education, but there are also tax benefits available if a child is enrolled in an educational savings account. By planning shortly after the birth of a child, parents can fit contributions in with a monthly budget making it an expense that is always there and consequently easier to handle.
With the help of a financial planner, starting an educational savings account is actually a very simple process. The most important thing is the peace of mind in knowing that your child's financial needs for the future are taken care of. As parents our number one priority is that of making sure that we give our children the best possible chance at succeeding by providing the means to a quality college education.