It is important that parents start as saving money for kids’ college education as early as possible. The sooner that saving money for kids college education begins, the more effective the saving will be, and the less of a burden it will be as well. There are a variety of ways today that parents can go about saving money for their kids college education.
One of the best ways to save money for kids’ college education is through the state college fund programs. While not all states have these programs, those that do provide a tremendous service to parents. These funds not only grow interest, the usually will lock tuition at a state college or university in at the current rate, saving literally thousands of dollars over what college will cost when the kids are ready to go. Even if the child is not going to go to a state college or university, the money can be applied to a private school or an out-of-state school. Some locations also offer an education IRA account, and these accounts are a good way to also set aside money for kids’ college education.
Another good way to go about saving money for kids’ college education is with savings bonds. Savings bonds can come in any number of denominations, and have a variety of maturity dates. Savings bonds are a great way for saving money for kids college education, and you may even be able to have these savings bonds purchased via an automatic deduction from your paycheck or from your bank account.
The worst way to go about saving money for kids’ college education is by just hanging onto the money. Putting the money in a savings account with a low interest return, or even worse, sticking their college money in your sock drawer, is like throwing away the interest that can be gained through any of the above means.
Finally, one often-overlooked way to save money for your kids’ college education is just by encouraging their natural talents. Whether they are gifted academically or good at a sport, there is almost always something that a child can become good enough at to earn some scholarship money for their college education.