I have a New Year’s resolution for you to start 2008 off right. Vow to begin a college savings plan for your kids and add as much or as little as you can each month starting next year and beyond. It doesn’t even matter if all you have to save is $25 a month or $1000. Save what you can and get started. The sooner you begin investing, the further your savings will go.
The less money you have to set aside for your kids, the sooner you need to start. Money saved when your children are young… less than the age of five for example… will actually grow faster and take you further toward a goal of sending your kids to college than money saved later. Make the most of the tax savings and compounding interest by starting now.
The income gap between college graduates and high school graduates can be huge. So ensuring your kids get some kind of college education can really make the difference for their future opportunities. Even if you can’t save enough money to pay for it all, even a portion of the tuition costs can get them going. Most college students do have to find grants, part-time jobs or financial aid. Having a portion saved will take some of the pressure off and give them a gentle nudge towards improving their life.
If your kids are already older, it is best to also start evaluating your current savings and additional funding options. As the time grows closer to high school graduation, start doing the research. The Internet has really made it much easier to find grants, scholarships and financial aid. Think beyond your expectations. Some of the most expensive colleges often have the biggest pockets for scholarships. When searching for college opportunities, look at all available options. Some may even surprise you.
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