Saving money for college is a great way to assure that your children have the education that they need to be productive members of society. When looking to save for your child’s future, read the tips here that can help with your saving for college.
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- Start saving as soon as you can. It isn’t always easy to put away money for the future, but if you save just a small amount each month, you will be surprised at how fast it grows. With an 8 percent average annual return on an 18-year investment of $100 each month, you will have almost $50,000.
- Stock your savings with stocks. Tuition costs are on the rise. Because of this, a portfolio with stocks can help you build the savings that you need. Once your child is old enough for college, you can shelter the returns by simply switching more money into cash and bonds.
- Consider mutual funds. To take some of the responsibility off your shoulders, you can invest in mutual funds. This way a professional will be in charge of your account and you won’t have to watch the markets continuously.
- Contribute to a 529 savings plan. With a 529, you can make qualified withdrawls with no tax penalty. That means you can save over $200,000. Also, you can start this savings account at any time since there are no limits on age or income.
- You don’t always have to save the entire cost of college. While savings does help, there are grants and loans offered by federal, state, and private lenders. These funds can cover any amount you don’t have.
- College loans aren’t too hard to get. If you are considering taking out a loan to help pay for college, lenders who offer this type of loan are typically more lenient than other lenders.
- College loan lenders are flexible with repayment. After graduation, you or your child will have a few months to begin repayment. Not only that, but many lenders will lower the interest rate by a little for setting up automatic payments.
- There’s a tax break with student loans. For the life of the loan, you can deduct up to $2500 of interest a year.
If you want more information about saving for college, or if you need more information about college in general contact usand we would love to help.