June 5, 2020Saving for Your Child’s College Education
The minute you bring your little bundle of joy home, thoughts of their college education begin looming in the back of your head. You only want the best for them – good school, great education, a rewarding career. But between skyrocketing college prices and your need to prepare for retirement, how can you save enough for your child’s education? After all, you still have everyday expenses, too. Keep reading to learn four baby steps to save for your child’s college education.
- Start small, start early. For example, when your child is born, if you put aside $150 each month until they are ready for college, the balance would be over $32,000 by the time they reach 18. And that doesn’t even include all the compound interest you’ll be earning over 18 years. With your PEFCU membership, you could open a savings account for your little one from starting at age zero. They’ll join the Hugh Manatee Kids Club, where they will learn the value of money as their savings grow.
- Gradually increase your deposits. Just because you save $150 each month for your child’s college expenses doesn’t mean you can’t increase that amount. As you advance in your career, get a promotion or bonus, set a goal to slowly increase that monthly deposit. Before you know it, you’ll be up to $250, $350, or more each month. Again: START SMALL and START EARLY.
- Accept outside contributions. No rule says others can’t help, especially family members. It is even common on birthday invitations or holiday wish lists to see a link where you can donate online to the child’s college fund.
- Get the Right Help. There are so many options when it comes to saving for college expenses. But which option is the right one for you? Does it make a difference if your child is still a toddler or if they are already in middle school?
That’s why PEFCU is here. From Hugh Manatees Kids Club and BOOM! Teens Club to Coverdell Educational Savings Accounts and Youth Share Certificates, we can help you find the options that work for you and your specific needs.
Each individual’s financial situation is unique, and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; It does not constitute legal advice. If such advice or a legal opinion is required, please consult with competent local counsel.