How to Save For College
Estimate your need and set a savings target., Start saving as early as possible., Start working early to earn your own college money., Get help from family members.
Step-by-Step Guide
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Step 1: Estimate your need and set a savings target.
It is never too early to begin thinking about saving for college.
Although you do not need to decide exactly what school you (or your child) will attend, you should begin to consider some general possibilities.
Understand that private universities generally will cost more than public universities.
Public schools also grant tuition reductions for in-state residents.
As your child grows and begins to develop interests, you can certainly redirect your focus, but it will help to set some targets for saving as early as possible.According to U.S.
News and World Report, the average tuition and fees at a private university for the 2016-17 school year are $33,635.
The most expensive school in the study is Columbia University, with a one-year cost of $55,056.The average in-state resident cost at a public university, reported by College Board, is $9,410 for a single year.
These figures tend to increase by about 3% to 5% each year. -
Step 2: Start saving as early as possible.
Even without any specialized investments or major savings plan, you can get a very big start on college saving by beginning early.
Small amounts of money that you begin to set aside early can grow into substantial savings, even at modest return rates.
The sooner you begin saving, and the more you save, the wider your range of options will be when the time comes to attend college., As a student, there are many opportunities to begin earning money that can be set aside for college.
Some common jobs that are available even to relatively young students are babysitting, yard work, dog walking, house sitting or washing cars.
If you are energetic, and with your parents’ permission, you can visit neighbors to ask if they have any jobs you could do to earn some money.
As you earn, begin setting some money aside for college., Relatives, even extended family members, may be willing to help with college saving.
If you speak with them early in the child’s life, you could design a saving plan that would not be too intrusive or expensive, but can have very positive results.
Instead of, or perhaps in addition to, birthday or holiday gifts, you could ask relatives to contribute to a savings account for college.
They will probably feel very good about being able to help in this way.
The IRS allows individuals to make gifts to family members without paying a gift tax on the transferred money.
This allowance is as high as $14,000 for gifts made during
2016. (Note that this is not tax deductible for the giver, but the amount of the gift is excluded from taxable income for the recipient.) -
Step 3: Start working early to earn your own college money.
-
Step 4: Get help from family members.
Detailed Guide
It is never too early to begin thinking about saving for college.
Although you do not need to decide exactly what school you (or your child) will attend, you should begin to consider some general possibilities.
Understand that private universities generally will cost more than public universities.
Public schools also grant tuition reductions for in-state residents.
As your child grows and begins to develop interests, you can certainly redirect your focus, but it will help to set some targets for saving as early as possible.According to U.S.
News and World Report, the average tuition and fees at a private university for the 2016-17 school year are $33,635.
The most expensive school in the study is Columbia University, with a one-year cost of $55,056.The average in-state resident cost at a public university, reported by College Board, is $9,410 for a single year.
These figures tend to increase by about 3% to 5% each year.
Even without any specialized investments or major savings plan, you can get a very big start on college saving by beginning early.
Small amounts of money that you begin to set aside early can grow into substantial savings, even at modest return rates.
The sooner you begin saving, and the more you save, the wider your range of options will be when the time comes to attend college., As a student, there are many opportunities to begin earning money that can be set aside for college.
Some common jobs that are available even to relatively young students are babysitting, yard work, dog walking, house sitting or washing cars.
If you are energetic, and with your parents’ permission, you can visit neighbors to ask if they have any jobs you could do to earn some money.
As you earn, begin setting some money aside for college., Relatives, even extended family members, may be willing to help with college saving.
If you speak with them early in the child’s life, you could design a saving plan that would not be too intrusive or expensive, but can have very positive results.
Instead of, or perhaps in addition to, birthday or holiday gifts, you could ask relatives to contribute to a savings account for college.
They will probably feel very good about being able to help in this way.
The IRS allows individuals to make gifts to family members without paying a gift tax on the transferred money.
This allowance is as high as $14,000 for gifts made during
2016. (Note that this is not tax deductible for the giver, but the amount of the gift is excluded from taxable income for the recipient.)
About the Author
Helen Freeman
A passionate writer with expertise in cooking topics. Loves sharing practical knowledge.
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