Make Sure Your Children Can Go To College!
There are a lot of things that you need to save for and one of the most important is for your children to attend college. There are other ways to pay for school of course but you should not necessarily rely on these. In almost all cases you are going to have to contribute the bulk of the money that is required to pay for their education so you need to make sure that you are prepared for that.
There is no getting around the fact that sending your children to college is very expensive. The cost of tuition can be several thousand dollars each semester and this doesn't even begin to cover the cost of books or living expenses. In most cases you will also have more than one child which will multiply the cost of sending them to college. This is why it is important to make sure that you are prepared for when this expense comes along. Fortunately you do have eighteen years to start saving up for it.
The best time to start saving for your children to go to college is when they are born. This will give you the most possible time to prepare. The best way to do this is to put money into the fund on a regular basis like every month. The key here is consistency. Most people try to save for major expenses all in one big chunk. This results in them having to make major sacrifices. By putting money into the fund every month you should be able to avoid this. You will also be able to get the most out of compound interest if you start saving early.
When it comes to saving for your children to go to college there are lots of government programs in place to help you. These are usually in the form of tax deferred savings accounts. These work similar to retirement accounts in that you can get a tax deduction for the money that you contribute, although you will have to pay taxes on the money when you withdraw it. Allowing your money to grow tax free will help you to make sure that you are getting the best possible return so that you will have the most money available to pay for college.
One thing to keep in mind is that although saving for your kids to go to college is important it is not the only important thing that you need to save for. You certainly need to save for retirement and the sooner that you start doing that the better. There is also a good chance that you are going to need to save for a house during this time frame. That means that you are going to have to find a balance when it comes to how much you are going to contribute to your children's college fund.