The price of a college education is slowly but surely creeping up year by year. If you don’t want your children to be starting off their careers with piles of debt, you could help them by paying for their college tuition. However, if you do plan on giving a helping hand, you’ll need to start saving in advance (unless you’re filthy rich). So, what are the best ways you can make sure your children’s education is paid for?
529 College Plans
The majority of states in the US offer 529 college plans. The sooner you start one of these plans, the more money you’ll have available to you when the time comes. Interest rates differ in different states and it’s important to read the small print before agreeing to any plan. But, all in all, they make sense for children planning on attending college in the future. You put the money in and withdrawals can be made to pay for qualifying purchases, like college books or tuition. The only downside is if your child decides to not attend college. You may end up paying fees to withdraw the money and use it for something else.
Your Credit Report
It isn’t easy to start saving for your children while they’re still young. In fact, many families adopt a day at a time kind of approach. After all, you can’t possibly plan for everything the future may bring. With that in mind, there are many parents who take out loans to pay for their child’s college education. But, if you’re planning on doing the same thing, you need to take care of your credit score. Lenders often refuse money to people with bad credit. Bestcreditrepair.co is the best place to visit for tips on how to boost your credit score and make sure you have the money you need available to you at the most important moments.
There will be many times throughout your children’s lives that they receive cash gifts. Whether it’s for birthdays, Christmas’, Bar mitzvahs or anything, the money always adds up. If every cash gift was collected and stored away for college, it could add up to a significant amount. You can even create donation websites where family and friends can make regular contributions throughout the years. If you don’t want to keep it in a savings account, the money can also be directly deposited into 529 plans.
Prepaid College Funds
The beauty of prepaying parts of a college education is that you only have to pay the price stated right now. So, if your child won’t attend college for another ten years and prices rise in that time, you’ll be getting yourself a bargain. You can pay for as much or as little as you can afford, but it’s one less thing to pay when the time comes. The downside is that only a few states currently offer these prepaid plans.
Although it’s difficult to predict what the future will bring, planning financially for big purchases will mean you don’t have to struggle when they arrive.