It Pays to Start Saving for College Early
Monday October 20, 2008
Funding your child's college education can seem like a daunting task, but if you start early, you can build up substantial savings with relative ease. The power of compound interest only works when you give it plenty of time to work. Even if your son or daughter is approaching their first year of college, it isn't too late. There are many tax benefits available for college savings, so even if you can't take advantage of 10 years of growth, you might be able to save money on taxes. Find out how much money you can save for your child's education by looking at the following examples.
More information on saving for college:
More information on saving for college:
Comments
We’re facing a huge dilemma in the USA. To get a job that approaches “the American dream”, you almost have to have a degree in something. It doesn’t matter what. Just something.
Contrast that with the fact that some students are facing debts soaring upwards of $250,000 to fund their degree… where they’ll make $35,000/year. If the student got a job straight out of college, and gave 100% of their salary to their debt, they would pay it off in 7.5 years.
But we know that’s not practical. They will have to live, eat, rent, etc after they graduate… Oh. And taxes.
You’re right in saying that we need to start saving as early as possible. Put $100 in on the day your child is born. Seriously. With the magic of compounding interest, it helps.
Next, we really need to find a way to cap education costs. If we (the average joe) don’t then big-brother will have to step in with regulations at some point. What is that way? I haven’t the foggiest. At least, not yet.
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Jerry
Jerry’s Frugal Living Tips
Tuition costs have increased exponentially in the last 20 years. You need to start saving for college when you start thinking about having a child.