As a parent, there are few things more important to you than your child’s education. If you have children, or you’re planning on starting a family, you’ll have to take many financial decisions into consideration. While college might seem like a long way away if you have a young child, it’s never too early to start saving. Starting a college savings fund now allows you to benefit from increased yearly returns, which helps ease the burden once your youngster is ready to start their higher education. Read on to learn more about why it’s so important to save for college.
College Costs
The price of education in the U.S. is growing, and it is difficult to predict what changes might come to pass by the time your children are ready for college. As of 2010, the average cost for an in-state college education at a four-year school was over $15,000 per year. For private colleges, the average cost per year was over $35,000. These costs are only expected to rise, which should give many young parents reason to start saving for college now. By starting to save early, you can help ensure that your child will have a better education, which can translate into more lucrative career options for them.
Saving vs. Borrowing
If you do not have enough money to pay for your child’s education, there is the possibility that they will be awarded a scholarship. It is nearly impossible to predict that so far ahead, however, which makes saving a far better choice. You and your child could also take out loans to pay for college, but this can saddle them with debt as they try to make their way in the workforce. To give your child every advantage possible, try to take the financial burden off of them for their education. Saving money can benefit you both in the long run.
At Financial Directions, LLC, we understand the challenges that come with planning for your children’s education. Contact us at (520) 408-7777 to talk with our experienced Tucson financial planners so you can make the best decisions for your family’s future.
