How Much Should You Save For Your Kid’s College Education? (6 Simple Steps to Implement Today)

One of the biggest questions parents ask themselves when they have kids is "How much should I save for my kid's college education?".

Today’s college students face a number of challenges when planning for their post-secondary education.

This is especially true for today’s millennial generation who will be looking to fund their own education as soon as possible.

If you have children, it’s important to understand the type of financial resources you will need to set aside for their college education too.

As many parents know, student loans can be expensive and can end up eating into your savings later on in life.

So how much should you save for your child’s college education? It all depends on your personal circumstances and the cost of higher education today.

How much does a college education cost these days?

College education has risen in price over the years.

It has become an expensive venture for a significant proportion of students and their families thus making it very difficult to say exactly how much you need to save.

Fortunately, with good financial planning, most families may pay for schooling and job training for their children. For the sake of your child's future, begin these pointers as soon as possible.

6 Simple Steps to Implement Today

1. Start Planning Early

Your child will be entering college or trade school in 17 or 18 years, so starting planning now will help you avoid needing loans or other financial aid.

Even if you don’t plan on going to college yourself, it’s important to plan for your child’s post-high school future.

Working with a financial adviser or counselor can help you understand different saving options, like 401(k)s or IRAs, and make sure your child has the right insurance coverage.

And if you don’t feel confident in your child’s post-high school plans, consider putting them through school at a community college or trade school.

In most cases, you won’t have to pay anything out of pocket and your child will be further ahead in their planning.

2. Open a 529 College Savings Plan

Look for an excellent 529 plan through your state and your local bank to help you set up the best plan for you.

Parents can sleep better at night knowing their children won't one day be burdened by overwhelming student loan debt thanks to the many benefits 529 plans provide.

By taking advantage of these plans and their many advantages, parents can set up a comfortable future for their children.

As long as funds are used to pay for qualified educational expenses, withdrawals are free of tax and can also be used to pay for tuition, books, and other necessary equipment.

In addition, 529 plans are not weighted as heavily as other assets toward your expected family contribution (EFC), so saving money won't have a negative impact on your federal aid eligibility.

3. Invest in Your Child’s Obvious Talents

Colleges like well-rounded students with interests outside of the books.

Save for lessons to help your child become a better singer, musician, wrestler, runner, and so on so that he or she can become a well-rounded student.

This will help your child become a well-rounded student because they will be interested in other things besides just academics.

This will also help your child become a well-rounded individual who is interested in many things.

As a parent, you must encourage your child to be interested in many different things.

Invite him to try new things such as playing a new sport or taking up a new hobby.

This will help your child become a well-rounded person and will make him happy.

You do not want your child to be bored, do you?

4. Invest in Entrance Exam Practice Courses

Many colleges now use standardized tests like the SAT or ACT to determine financial aid like scholarships.

You can save money by paying for test-taking training starting the summer before 9th grade or even in middle school.

Sign up for a test-taking course to improve your score and reduce the amount of testing you have to take.

Many colleges now accept applications through their websites or apps, so you can save money by applying early.

Some public colleges offer merit-based scholarships if you apply before the first of January, so apply early!

Many students now receive financial aid from federal or state governments. You can find out what you qualify for by visiting Student Aid or filling out the Free Application for Federal Student Aid (FAFSA).

If you are a dependent student, your parents might receive financial aid too.

Depending on your situation, you might be able to get a Pell grant, in-state tuition, or a work-study job to help pay for college.

5. Encourage Your Child to Contribute

From the start, help your child save at least 20 percent of everything they earn.

Then, they can put away money for their long-term needs, wants, and desires.

By teaching your child to save, you’re also teaching them about responsibility.

They might not enjoy putting money away every month, but they’ll respect it once they realize how much it can help them in the future.

You can also encourage your child to start a savings account.

This will help them keep track of how much money they have saved, and how much they need to save.

Even if they’re young, start them young!

Set up an account with their first job. It doesn’t have to be a lot of money.

Even $5 a month can make a huge difference over time.

6. Summer before 9^th Grade Planning

It’s time to start real, realistic planning when your child is entering high school.

At this time, you’ll know more about the costs and your child’s interests.

This will help you plan for the next chapter of your child’s life, whether that’s going off to college or starting a career.

And, while it may be scary to think about these things now, it’s important to start planning.

The earlier you start, the better.

And, if you feel overwhelmed or uncertain, don’t be.

There are things you can do to make the process easier, like signing up for a financial planning course.

Conclusion

If you have any college funds to send your child, don't set aside a single cent until you've contributed to your retirement.

College expenses can always be kept low by opting for online schools, alternative schools, trade schools, and so on.

If you have children, you know how important an education is. It’s not only the best way to prepare for the future, but also a safe way to get a good job and make a significant amount of money.

The cost of higher education continues to rise and many people are struggling to save for their children’s post-secondary education.

Many people believe that you can’t save for your child’s college education by saving for yourself.

While saving for this huge investment is important, you can also save for it by investing in the right financial products.

For example, you can invest in a 529 plan or an IRA through your employer.

If you don’t want to open an account directly with a financial institution, you can also open one through a broker.

A broker has access to a variety of financial products and can help you find the right products to fit your needs.