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College will be one of the hardest and most expensive tests that you will face during parenthood. Although you have plenty of time to prepare, the threat of your child’s large college tuition bill will always loom large.
College tuition prices continue to rise, making many parents scared that they won’t be able to afford to send their child to college. While it may be difficult, there are some financial adjustments that you can make that will make paying for your child’s college education much more manageable. Here are some tips and tricks that you can use to be better prepared for that dreaded college tuition bill.
Start Early
It’s never too early to start saving for your child’s college education. In fact, if you’re extra prepared you might even start saving before your child is even born. While this is not required, it will give you a big head start on your savings.
However, you should start saving no later than your child’s infancy. You want to avoid scrambling to save cash at the last minute. Regardless of where you choose exactly, make sure its early on so that you have well over a decade to accumulate enough funds for your child’s education.
Constantly Save
It is important to be constantly saving throughout your child’s entire childhood. This will ensure that you have enough funds when the time comes. There are several ways that you can go about this.
One of the most effective methods is designating a small percentage of every paycheck to your college fund. If you’re going by the 50/20/30 rule, then you should already be saving 30% of your paycheck. Try delving deeper and dividing that saved portion into your college savings.
However, not everyone operates like this, so try finding a ratio that’s comfortable for you and your family. This is a great way to ensure that your college fund is constantly being added to, and it changes based on your income, giving you more financial flexibility.
Another method is adding a flat amount to the fund every month. For example, if you save $200 a month for 18 years of your child’s life, then you will have over $40,000 saved up for when your child goes off to college.
Establish Goals
Establishing goals can be a great way to ensure that you’re saving enough money for your child’s college. This goals can vary greatly and will probably depend on what your income is.
For example, you may have a goal to save $15,000 by the time your child turns ten years old. Regardless of what your goal is, setting one is a great way to keep you honest to your saving methods and keep you on the right track.
Don’t Take On Too Much
If you know that you’re going to have to handle the burden of college tuition soon, then it would be wise to slow down your spending. Try not to max out your credit cards or take on too much debt during this time period.
If you splurge too much, then you may be tempted to dip into your college savings to pay off some of your debt. This doesn’t mean that you have to live like a pauper, but you should definitely be more fiscally responsible while you are saving.
Additionally, make sure you’re taking other big expenses into consideration as well. If you’re looking at Fresno houses for sale, make sure you’re carefully budgeting so that you can still set aside money each month for your child’s college tuition.
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