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It takes
careful planning and a
disciplined investment approach
to afford the escalating cost of
a college education. The key in
saving for college is to start
early, since time is the
greatest advantage you have to
ensure that the funds are there
when you need them -- whether
it's five years or 18 years down
the road.
There are
clear steps you can take now:
- Identify how much a
college education is likely
to cost when your child is
ready to attend. You'll need
to target a specific school
or type of school and
estimate the average costs
for tuition and fees, as
well as additional expenses
for a two- or four-year
program.
- Start as early as
possible and invest
regularly, either monthly or
annually, to ensure that
your child's college fund
continues to grow and
compound over time.
Automatic Monthly Investing
can be a great asset in
reaching college savings
goals.
- Remember that financial
aid is available in the form
of government loans, grants
and scholarships and may
provide an alternative way
to fund your child's
education, if you qualify.
- Consider investing in a
Section 529 Plan. These
state-sponsored college
savings plans allow you to
make contributions into an
account to pay those future
costs. 529 Plans offer tax
advantages to both the
account owner and the
beneficiary since no income
taxes are paid on the
earnings if the money is
withdrawn for qualified
educational expenses. Every
state has instituted at
least one plan and there are
many sources on the web for
more information.
No matter
which approach you take, the key
to being able to afford college
for your children is to
start
now. Use the
following articles and tools to
get started today.
Funding an Education: The Many
Options
Mutual Fund Education
Alliance
Why Save for College Now
Fidelity Investments
Saving for College in Today's
Economy
Franklin Templeton
Investments
College Investment Calculator
T. Rowe Price
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