When Should Parents Start Saving for Their Child’s College Expenses?
If parents are planning on helping their child with college expenses when should parents plan to start saving?
When should you start saving for your children’s college education expenses? The sooner you do it the better off you’re going to be. I have had parents that have started saving when they were pregnant with their first child, so defiantly the sooner you start saving the better off everyone will be.
Because of the power of compounding; which is a factor when you’re investing in the stock market, the sooner you also start saving the less you’ll have to put away and the more the earnings will take care of those college educational expenses.
What is on average the cost for a 4 year in-state and out-of-state college degree/education?
While none of us have a crystal ball and can predict what college or university our children will want to attend, we can have some influence on their decision – if we set boundaries on how much we are willing to spend on them per year. These charts can give you a reasonable understanding of what to expect in higher education costs that will allow you to create a number you think is reasonable to support your children given your financial situation. **I strongly encourage you to make sure your retirement funds are covered before paying for your children’s college education. Do not take from your retirement if you can’t afford to retire on what you’re saving currently. While you may plan on working longer to make up your retirement accounts, you may not have the luxury of doing so, if something happens to your health.
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