Finance Tips For Kids’ College Funds

With the continuing price increase of basic commodities such as oil, it’s sometimes hard to even think about other important matters such as savings accounts. But, many finance experts agree that a savings account can be a lifesaver especially during a slow economic pace. Having a savings account may actually help you deal with future expenses such as your kids’ college funds. If you think saving money for your children’s college funds is a tough task, here are some finance tips that can help you get started:

Plan Ahead

When it comes to college funds for your kids, nothing beats a well-thought out plan. It may not be a perfect plan but the fact that you have started to think about your kids’ futures at an early age is a good sign. Opening an account that’s solely meant for the college fund can be the first step. Once an account is opened, you and your partner can decide on how much you should set aside each month for the college fund. You can increase the amount you set aside each month depending on the yearly increase in tuition rates.

Set out Realistic Expectations

If you plan to send all your kids to Ivy League schools, base your plan on an amount or percentage of the tuition fees that you can really afford. It’s not uncommon for families and kids to apply for college aids from the government and other organizations. So if you think you can only afford a certain amount, base your financial plan on that.

Be Practical

To be able to provide extra cash for that college fund, you and your partner should control your expenses. One tip is to limit your spending habits. If you and the kids love to eat outside every Friday night, try to limit it to one Friday a month.

Let the Kids Know

Letting your kids know about how expensive going to college is can help them deal with it in a more reasonable manner. Informing them about the different college scholarships and aids various organizations are offering is one good way of letting them know that going to college is a serious financial matter.

source:
Money Central MSN