Being a parent isn’t a cheap adventure. From the moment you find out you are pregnant, money is sifting through your fingers and all you can think about is all the things that you have to afford. Do you need a new house to accommodate the new baby? Do you have the right furniture for the baby to use? Do you have enough clothes? Are you prepared for the hospital costs? There are so many questions thrown up when parenthood becomes the next step for you, and when you are paying for the everyday costs like childcare and diapers, money seems like something you’ll never get to have again!
While you’re there panicking about the costs of the impending college education that you want your children to have, the adverts for preapproved credit cards are flying through your mailbox, which can be very tempting! Trying to decide how you are going to afford the education fees, living costs and food help to support your teenager when they go from high school student to college kid can be rather overwhelming, but we’ve got five ways you can save for their college education.
- Planning early is so important. It’s better for parents if they map out what they can afford for a college education while you’re still pregnant with your baby. Getting a clear picture of your finances can give you a really good idea of what you can save up for the future, and you can read about the $2K rule of saving for college to get a good plan in place for your children.
- Setting up a savings account with a high-interest rate is going to help you to go a long way. Doing this while they are still in diapers is going to give you eighteen years to save a decent chunk of money to help them with either their fees or their living costs while they are away from home.
- Setting yourself a target to hit is important. If you want to save up for your children, you need a goal. Ask family and friends who want to give your children gifts to instead top up their savings accounts and that way you can build on their college education as a unit.
- As much as possible, keep an eye on your budget. If you get a pay rise or you lose your job, you need to think about reviewing how much you put away. Sometimes you can add more, sometimes it’s less, but as long as you are adding to the account every amount is going to count.
- Always take a balanced approach to your child’s future – look at every angle and every possible cost that could come your way. Look at college costs each year so you can watch the possible changes.
Preparation is so important for your child’s future and if you get prepared early, you’re not going to be panicking when high school is almost over and college is on your doorstep.