Save For College - How Much Does It Cost?
How much does it cost to save for college? It depends on where you want your child to go to school and how far into the future the college education will be. If you start to save for college the minute your child is born, it will cost you a lot less each week than if you start saving when he or she starts high school.
When you save for college, there are many things to consider. One is where your child will be going to school. If you have your heart set on him or her attending your alma mater which is an expensive and private school, chances are that you are going to have to start saving right away in a high interest yielding account so that you can afford it. Some private colleges cost as much as $20,000 a year to attend. When you think about that over the course of four years, this is $80,000.
If, on the other hand, your child decides to attend a state college or university, it will cost substantially less. You can get away with an education that costs about $10,000 a year, including room and board. This is not a lot to save for college if you start when your child is young.
Even if you put aside only $20 a week to save for college, you should have enough by the time your child reaches the age of 18 to send them to a state college. If your child manages to get a scholarship because of academics or sports, then you can put that money aside for your other children or you can give it to them when they graduate college and get a job. This will be a nice start for them in life and will enable them to use as a down payment on a house.
It costs quite a bit of money to go to college today. This is why it is so important for a parent to start to save for college right away. The more you manage to save for college, the easier it will be to finance your child's college education. The less it costs for your child to go to college, the more you can use that money for other means.
Do not rely on scholarships or grants to finance your child's education. These do not always come through. If you are relying on an inheritance, discount that as well. This may not come through, either. Student loans are a good idea, but have to be paid back. The best way to insure the future of your child is to start to save for college right away. As the cost of going to college continues to rise, it makes sense to save for college as soon as possible to defer these costs.
