Fifth Third Securities how to save for college
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Setting aside $25 or $50 a month doesn’t seem like much when the cost of a four-year degree could exceed $100,000. But given time and interest, these savings could add up to a significant sum.
Planning for your child can make all the difference. Parents who put off planning for college end up with major regrets. Experts suggest you start saving for college shortly after your child is born.
If your child is getting ready for college, our college guide offers financial aid information for students and parents.
One of the biggest mistakes parents may make is using their retirement savings to pay for college. But the reality is, there are more options to finance college than there are to pay for retirement.
The general rule of paying for college is one-third comes from savings, one third from current income, and the final third from a combination of student and parent loans. Using that formula is a good way to start planning for your child.
There are also tax-advantaged+ savings programs for education. These pre-paid tuition or education savings plans have advantages and disadvantages++, so do your homework to see which works for you.