With the economy sluggish still and your baby expenses mounting, you’re probably too concerned with paying for diapers to think about paying for college. By the time your newborn is packing up for college, four years at a private university will cost almost $350,000, and state schools could set you back as much as $116,000.
You don’t need to have all that dough in the bank to make your kid’s college dreams come true, says Parents Magazine. A more realistic plan is to divide your child’s estimated college expenses into thirds and plan to save a third, pay a third from your salary each year your child is in college, and borrow the other third through parent and student loans. “This is a practical way to prepare,” says Jeanette Pavini, a household savings expert with Coupon.com. “Of course, when possible, you should stash away more. And remember that you can adjust accordingly when life brings the unexpected.” Whatever you do, don’t procrastinate: The sooner you begin saving — no matter how little — the better.
One thing you could start now is opening a savings account that will help for their future. Even by starting with a little now, by the time your child is 18, they will have enough money in their savings account to be comfortable. It’s a great way to teach them to save too. Chore money? Ask them how they’d like to spend it and how much they would like to put into savings. Teach them young that it’s always best to not spend everything you have, and to save.
Based on a new study was released by EARN Research Institute about parents’ perspectives on saving for education beyond high school, it showed that 69% of parents considered saving for their children’s higher education a priority, only 53% of parents have actually started saving.