How Much to Save for College

Anyone with kids knows there are an endless list of things which they need to worry about concerning their children but one of the more important questions which needs to be answered is how much needs to be saved for their college education. (Those without children do not need to worry about this financial burden).  With the cost of college going up each year and at a much faster rate than inflation it can be difficult to estimate how much a year of college will cost when your children reach that age.  Even if you can’t get an exact number it is still important to start saving today because you want to give your children the opportunity to get the higher education needed to help ensure a financially secure future.

Estimate the Cost of College

There are many things which parents can do to help estimate the costs of college for their kids no matter how young they are.  First, take into account that the range of costs for college can go anywhere from a few thousand per year to tens of thousands if they go to a higher end university.  One of the first things to decide when planning for your kids college is what type of schools you’re willing to pay for.

Define What you will Pay For

Many parents will commit to paying for their children’s schooling at a local community college or even a state school since they are less expensive than many of the larger universities or out of state options.  If your child decides to go to a more expensive school just make sure they are aware that they will have to make up the difference in price.

Cheaper Alternatives Could be Just as Beneficial

For the vast majority of careers it won’t make a significant difference whether they go to a good local school or travel out of state to an Ivy League school, but sometimes it is important to a child to go to a specific school.  When planning how much you’re able to save just keep in mind that there are some unknown variables which can’t be answered until your children are well into High school so just make a reasonable goal and start saving each week.

Start Saving for their College Now

By starting early most families can save a small amount out of each paycheck into their educational account and it will build up significantly for years.  Many parents don’t even tell their children that they are planning on paying for their higher education until they have picked the college they want to go to so they can surprise them with this generous gift.  Whatever route you choose to take with your kids education just make sure to plan ahead in as much advance as possible to ensure you can save enough money.

2 Responses to How Much to Save for College

  1. Kari@Small Budget Big Dreams says:

    I don’t have kids yet, but with the way prices are, I feel like I probably better start saving now. My parents couldn’t afford to help us with college so it’s something I’d like to do for my kids.

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