It’s never too early to start planning for how you are going to pay for your child’s college education. Saving for college is critical. Public Universities tend to raise tuition every year!
It’s scary to imagine what that cost might be eighteen years from now.
If you have just had a baby or plan to have one very soon here are a few thoughts you might want to consider. Even if your child is older these ideas should help you plan for your child’s education.
Make sure you start sorting out your finances now. If you have a lot of debt (maybe from your own college loans) make sure and keep paying them off. Investing in paying off your debts is one of the best financial investments you can make. Along that same line, try not to go deeper into debt.
Infants are not interested in fancy toys, games or expensive DVDs. Try asking family members to give your baby savings bonds or contributions to a college savings plan instead of giving toys. People are going to give you a lot of stuff for the baby regardless so don’t worry about not getting the stuff you need (trust me, I just had a baby)! Financial contributions to your child’s education in the beginning also sets a good precedence for you to follow throughout your child’s life.
Before you decide to send your child to a private school consider the advantages of moving to a better school district. A little known fact is that public schools pay their teachers a higher salary than private schools which drives excellent teachers to the public districts. Take the money you would have spent on the private school and put it into a college savings for your child. It could be better for your home investment as well!
When your little one is ready to make the switch from day care to kindergarten you may be relieved and excited to have a lot of extra money in the bank account as you will no longer be spending it on child care. Before you rush off and spend the extra money consider just automatically transferring that money into a college savings fund. Your family will already be used to the lifestyle you were living while the child was in day care.
Giving yourself a plentiful head start to your child’s financial preparation for college can spare you much worry and financial stress when they are old enough to head out for campus!