Parents are facing the daunting task of affording college for their children in an era where tuition costs continue to rise. With student loan debt still plaguing many Millennials, the pressure to help their kids graduate debt-free is higher than ever.
But how can parents realistically save for college from the day their child is born to after they graduate? Here are some practical tips to consider at each stage of your child’s life:
**Saving for College When Your Kid is A Baby:**
– Open a 529 Account and make regular contributions.
– Set up an automatic $10 weekly contribution to the account.
– Put any financial gifts into the account.
**College Savings During Elementary School:**
– Use a UPromise Credit Card to save cash-back into the 529 account.
– Increase your weekly contribution to the 529 account.
– Start teaching your kids about financial basics.
**College Savings During Middle School:**
– Continue automated contributions to the 529 account.
– Emphasize opportunities for your teen to earn money.
– Teach your teen about investing.
**College Savings During High School:**
– Encourage your high schooler to start looking into scholarships.
– Consider dual-enrollment options to earn college credits.
– Talk about college affordability and encourage your teen to save money.
**Paying for College During College:**
– Complete the FAFSA to receive financial aid.
– Choose a college based on affordability.
– Encourage your child to minimize student loans and get creative about covering costs.
**Paying for College After College:**
– Let your child live at home to pay off debt.
– Direct your previous savings towards their debt.
– Consider using retirement savings to pay off student loans.
By following these tips and being proactive about saving and budgeting, parents can help their children navigate the costly world of higher education without drowning in debt. It’s never too early to start planning for your child’s future, and with careful financial planning, college can be a reality for every family.