subject: Why Save For Your Kid's College Fund? [print this page] If you're a parent and you're worrying how to send your kid to college, then you're not alone. The high cost of college education that is increasing each year is indeed bothersome. But guess what? That shouldn't be a big program after all because you can make use of loans, grants or scholarship program for your kids. However, while those options are good, the best way remains to start saving for your kid's college tuition right after he was born. As you can see, that's a whole lot of time to prepare!
Based on your financial capacity, you should be able to choose the best savings options available for you. For instance, if budget isn't too tight, investing on trust funds is a good choice. As your kid grows older, your savings will grow as well. Also, you will have a total control as to how the funds are being utilized or even hold the payout should the child decide college isn't on his priority list.
In addition, inquire at your local bank or any financial institutions near you if they provide service such as fund management that manages and grows your money in your behalf. The idea here is to let these experts invest your money for a certain period to stocks, bonds, or some other financial instruments. You will earn interest in return which should be ready by the time your child needs it for his college education.
For those who aren't financially blessed need not to worry about their child's education. Start small savings and eventually it will grow. Be vigilant for banks offering high interest rates if no withdrawals are made for a certain period or better yet, ask them if they offer college assurance plans.
Your child's college fund is only as effective as it gets if you update it periodically and to do that needs a bit of household budgeting to take place. You can use your savings to increase the size of the fund. Overtime, you'll have the money ready when he turns 18.
Don't limit yourself with your own savings to fund your kid's college education. Find affordable college educational loans you can put to good use. While still young, encourage your children to aim for scholarship grants. Many non-governmental organizations or private institutions support college funds to students having good grades. This alone can save you a considerable amount of money while teaching your kid diligence, perseverance and hard work, the aspects he will need to start his own life in the future.
