Financial aid, student loans, and scholarships all account for part of a student’s time in college, but much of the burden falls on parents. How can you make smart decisions while trying to fund your child’s tuition fees? Here are three important reminders.
- Have an emergency account – Set up a savings account just for emergencies. Whether the car breaks down or you are temporarily out of work, you don’t want to be tempted to touch your child’s college fund. Fund your emergency account first and then you can start saving for tuition.
- Avoid crushing debt – If you have a budget and stick to it, you should be able to avoid devastating amounts of credit card debt. With bills hanging over your head, it can be tough to justify a weekly or even month contribution to a college fund for a child who may even still be in elementary school, but the early you start funding, the better.
- Don’t forget retirement – We mentioned the accessibility of scholarships, financial aid, and student loans. Don’t skip retirement savings in the hopes that your child’s college education will lead to the money you need for retirement. Your children will be happier paying back a student loan and not having to worry about you than being debt free but feeling obligated to cover your expenses.
Early Funding Options for College
You don’t have to wait until your kids are in high school to start thinking about college funding. College Planning Source can help you give your child a head start on attending the school of his or her choice. Contact us today by calling 858.676.0770 or by submitting our online contact form.