All parents dream of seeing their children go off to college after they graduate high school, but the scary part of this dream is the fact that college education is so expensive, and it continues to get more expensive with each passing year. So how do you, as a parent, ensure that your child will be able to get the education she deserves? How do you make sure you can save up enough money through the years to allow your child to succeed?
Here are just a few tips that you can implement as soon as your baby is born that will allow you to easily save up money every year so that it will be there when you are ready to send your son or daughter off to college.
Get Insurance Coverage
Many companies offer insurance policies for your child from the age of infancy, and these are great because they allow your son or daughter to cash in on the savings at the age of 18, when he or she will be starting college. However, if your child decides that college is not the right fit for him or her, the great thing about an insurance plan that combines life insurance coverage with the college savings plan is that your child can use the money for other expenses instead of college tuition. The other great thing about comprehensive insurance plans is that parents often have the flexibility to change how much they contribute to the account each year. Therefore, if parents need to start off contributing less money to the plan due to a tighter budget with a new baby, they can always contribute more later on to make up for it.
Open a Regular Savings Account for Your Baby
From the moment your child is born, you can open a bank account that will be dedicated to saving money for his future. A basic savings account that earns interest is a super easy way to start saving up for the future. Adding your own contributions as well as monetary gifts from special events that families and friends give to your child will allow you to save money on a regular basis, and before you know it, a substantial amount of savings will be in that account for your 18-year-old to cash in on.
Invest in Stocks
If you are comfortable with the risks involved with investing in stocks, consider doing so for your child. Stocks are a great way to watch your money grow, and because you have the control to buy and sell stocks depending on how they are doing, you also have a level of control that you do not get with other forms of savings. Just make sure you speak with a financial advisor that can give you the right advice for long-term stock investments. If you are already a seasoned investor, this should be even easier for you than someone who has never invested in stocks before and does not really understand how the markets work.
Lisa loves helping people meet their goals and succeed, whether it is saving up money to purchase a dream home or going to college for a higher level of education. While researching the credit options offered by Natwest to college students, she came across uSwitch.com, a site that provides side-by-side comparisons of all of its credit cards.