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Start Saving for Your Child's College Education
by Jan Lehrtl
http://www.faqeducation.com
Parents, it is never too early to start saving for your
child~s college education which is getting more expensive
every year. If funds are tight when children are born,
grandparents are often a willing and valuable resource to
turn to for initial funding of an education savings
account. However you choose to start, start as soon as
you can; the moment of conception is not too soon!
Depending on how much money you have and how fast you need
it for college, you can either save in conservative or
aggressive fashion. Conservative investments run along the
lines of savings bonds which double in value about every
seven years. Aggressive investments would be high-risk/
high-yield mutual funds or stocks that can appreciate at
20-100% annually. Choose the investment vehicle that
is within your comfort-zone risk wise, and don't bank on
being able to fund college expenses short-term with
high-yield investments.
You may wish to make monthly deposits into a mutual fund.
These payments can be automatically deducted from your
paycheck each month, and many people never miss that money.
Over time the interest compounds, if left untouched, and
the investment will grow steadily. By the time you need it,
there should be a nice nest egg for your child~s college
education.
There are many occasions when friends and family members
buy gifts for children. Encourage these people to
make a cash contribution to the college fund instead of or
in addition to a gift that wear out, become obsolete, or
that your child will outgrow. Your children aren't likely
to appreciate the significance of this kind of gift now,
but it will have a lasting effect that they will
appreciate in the years to come.
Teenagers often work during summer breaks. The money
earned through these summer jobs can go a long way in
adding to the college education fund. Since the
contribution would be through their own toil and hard work,
they would be interested in doing well at college and would
take their education seriously. This would also give them
a sense of pride and achievement. Best of all (to your
teen), $1,000 can easily be saved in a single summer
working eight to ten hours a week at eight to ten dollars
an hour, and leave plenty of time and enough money for
leisure pursuits!
Are you still a little short on funds now that it's time
for your teen to go to college? It~s not too late
to apply for scholarships, grants, and loans. Have her
fill out the FAFSA form which will determine her
financial aid eligibility at all participating institutions
of higher education in case she transfers to another
campus later. This form can be readily obtained at the
college's financial aid office.
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