In fact, college costs on average are rising faster than the rate of inflation, according to the College Board. But don’t let the price tag discourage you – a college education has its benefits. The Bureau of Labor Statistics notes that workers with a bachelor’s degree earn more on average and have a lower unemployment rate than the workforce as a whole.
As a first step, determine how much you’ll need for education expenses: Will your child attend a public or private institution?
How to Save Smarter
Saving for your child’s education doesn’t have to be a daunting task. Consider the following to ramp up your savings strategy:
Save early and often by contributing to your child’s education savings plan on a regular basis.
In lieu of toys as birthday or holiday presents, ask relatives (such as grandparents)
After your child reaches school age, shift money used to pay for day care to college savings.
Use your annual tax refund or a bonus as an additional contribution to a college savings plan.
What About Your Other Goals?
You may be tempted to divert all your savings toward a college savings plan – but you most likely have other financial goals, such as saving for retirement. Time is a valuable asset, so don’t delay saving for one goal over the other – view them together. By understanding how your goals interact, you can work to make sure you don’t inadvertently derail one when saving for another.
We can work with you to develop an education savings strategy that takes into account all of your financial goals. For more information, call 616-281-9026, stop by my office, or visit https://www.edwardjones.com/