When you first had your child, you felt more pride and joy than you could imagine. But lurking right underneath these feelings are worries and anxieties for their future. It seems like yesterday your child could barely crawl, and today they’re ready to head off for their first day of school. You realize that college is coming up sooner than you think – and how will you pay? Do you need a life insurance policy? A new savings account? Here are five ways to make furthering their education more certain.
- Secure their future with a policy. Getting a life insurance policy is always a great idea, but you could consider a child plan as well. Such plans allow you to begin accounting for their college costs early on, so the plan can mature into a benefit that really takes the hassle out of how to pay.
Furthermore, many of these plans will cover the premiums just in case something does happen to you. So no matter what happens, your child won’t have to sacrifice their education.
- Weigh your child’s college education against every purchase you make. When college is ten or fifteen years in the future, it’s easy for some parents to feel like they don’t have to worry about it right now. However, the key to successful college financing is planning years and years in advance.
For example, your child is currently eight years old, and you’re looking to buy a new car. You could always go for a cheaper model, and put the money you saved toward their future education. Apply this to every major purchase you make for the next ten years, and you have a sizable college fund.
- Size up colleges now. There’s a lot to be said for being realistic about what you can afford. If you can’t afford a private university, encourage your child to start considering community colleges, trade schools, and cheaper, government-funded universities. Many are great institutions that will serve your child’s area of interest well, even if the name doesn’t have the same prestige.
- Utilize a savings account. You could always choose the simplest route – opening a savings account dedicated to your child’s education, and putting money in it regularly for the duration of their childhood. If you never or rarely make withdrawals, the accumulated interest will really help you out.
- Split the costs with your kid. Families with a lower income need to engage their child in planning for college earlier than others. When your child becomes a teenager, they should participate by reading up on various grants and scholarships they can apply for, and contributing to their college savings account through part-time work. It’s not always easy, but for millions of kids, it’s a character-building path to self-sufficiency.
Looking to worry less and enjoy the present moment with your young ones? One way we can cherish the time we have now is through effective planning for their future education. Whether it’s specialized policies and plans, savings accounts, or simple thriftiness, their success is within reach when you don’t delay thinking about college today.