| You've probably heard that by the time your child | | | | using the same calculations. |
| graduates high school it will take a fortune to go to | | | | Use these numbers to get you motivated. And yes, |
| college. While public colleges and universities are | | | | some of the education costs may be covered by |
| reasonable for many families right now, the cost is | | | | scholarships and financial aid, but you never know. It is |
| expected to rise to over $100,000 in 18 years from | | | | better to save too much than not enough. |
| now. Want to send your child to that same private | | | | You can simply use an online calculator to determine |
| school you attended? Be prepared for a tuition of | | | | how much you will have to save each year to reach |
| close to a quarter of a million dollars. | | | | your goal. Remember, interest is working for you here, |
| But if you start right now, you are going to be just fine. | | | | so it isn't as simple as dividing the goal by the time you |
| Time is the biggest factor in saving a large amount of | | | | have to save. You will find that the sooner you start, |
| money. It can work for you if you start today. If you | | | | the less you put in. |
| wait until you child is in high school, it will not be your | | | | Keeping this in mind, a savings account or money |
| best friend -- it will just move too fast. | | | | market account doesn't pay very good interest. Most |
| I don't know where to begin, you may be saying. So | | | | advisors recommend that if you are starting early, you |
| many parents aren't saving for their children's | | | | should be aggressive. Stock funds out-perform other |
| education because they really don't understand what | | | | investments over the long term. Remember, this is an |
| they will be facing. Many expect grandparents or other | | | | investment that requires your attention. Don't just put it |
| relatives to help out. But they don't realize that 18 years | | | | somewhere and leave it. Pay attention to the |
| is a long time and a lot can happen. | | | | performance of the funds. As you get closer to your |
| Start saving now. Every little bit counts. Remember | | | | child's high school graduation, start moving the money |
| that the early you start, the less it will cost you. Interest | | | | into more conservative investments. |
| works for you in many ways. Even a few dollars a | | | | Many people want to know which is more important, |
| week can end up buying several classes later on. | | | | saving for retirement or for a child's college education? |
| Start by estimating what your child's education will cost. | | | | You can do both. Make your retirement your priority, |
| At 5% inflation, the average public university may cost | | | | but don't ignore the savings for your child. Parents that |
| around $24,000 a year in 18years. If you have older | | | | are disciplined in saving money will teach a child a lot in |
| children, the cost in ten years will be around $16,000 | | | | life. Just as the college experience will. |