The ever-increasing cost of education and living
Parents today are faced with the very high cost of living just in the day to day running of their lives so when education gets added to the list it is enough to give them sleepless nights and stress them out because as parents we all want to see our child get the best education and start in life.
New ways to invest for your child’s future
The good news is, is that finance gurus have families too, so they are forever coming up with new and improved ways to help make a better life for your child.
Here are some of those ideas:
#1 Employers college fund for employees
One of the best ways to ensure that your finances are being put away each month is for them to be taken off your salary at the end of each month. A lot of companies these days are offering college tuition saving funds for their employees. There are a few companies that offer smaller private scholarships to employees for their children.
#2 Savings account Most banks these days offer a children’s saving account, with lower management fees and create learning packages. It is also a teaching opportunity whereby your child can learn how to save and invest at an early age.
#3 Dedicated brokerage accountIt has a lot more flexibility than most other investment accounts and if invested over a long period of time in the correct investment account it has the potential for higher returns that can be used for your child’s future tuition, wedding, etc.
#4 The 529 savings account
According to the statistics over half the parents in America are not even aware that this plan exists. This account gets paid into monthly after tax and is a tax-free account if used to pay for education.They are state-sponsored accounts and a parent is not limited to which state they wish to invest it with. Parents can also set it up so that the payment is automatically paid over to the account each month from their paycheck.
#5 Tuition that is prepaid
Many states allow parents to pay for their child’s tuition in advance, this means that the parents pay for the tuition at today’s prices no matter what the future cost of the tuition may be. Some say this is the smarter choice, but it is what the parent can afford and there are also some big downfalls to prepaid tuition.
It is always advisable to start saving for your child’s future from day one but then it is never too late to start either if you have not already.