Financial Goals: Saving For College – Phase 1

First of all, saving for college can never start too early. I remember seeing an advertisement for an infant college savings fund and I thought it was silly. Now I look around at all of my friend’s student loan bills and think about what a great idea that was!

When Should I Start?

We did cover this in the first sentence already…right away! Even a small amount of money, such as $25 or $50 per month, can be put away for your child from the very beginning. Of course this depends on your financial situation and circumstances. One search on the internet will pull up thousands of articles, systems, ideas and opinions! If you are in a lot of debt, barely making ends meet or just started saving for retirement…college saving may need to wait. The bottom line is to do what you can from the beginning. When people ask what your 1-year old wants for their birthday or Christmas, you can always say a college contribution, and mean it. Everyone will be grateful for it later!

How Much Should I Save For College

Now that is a loaded question. In 2015-2016, collegedata.com states that average tuition ranges in price from $9,410-$32,405 per year. This may or may not include room and board, supplies or food in the cafeteria! Multiply these figures by at least 4 years and you have yourself a hefty goal! Maybe you can’t save for all of it, but you can give your child a head start with some of it. Maybe the savings will limit where your child goes to school. These are all personal decisions. However, we would love to take a look at your budget with you and help you assess your situation and what you could contribute.

Whose Responsibility Is This?

Many parents feel the burden to give their child the best. However, this doesn’t let your child off the hook. An open and honest conversation about college savings should happen when your child is old enough to understand. I have a friend whose dad “made” her contribute 20% of anything she ever made straight to a college fund. Yes, that’s right. Every lemonade stand, every birthday gift, and every paycheck she made at the ice cream shop through high school. Then he matched it. It may have seemed to her like she was giving up a lot at the time. However, it has truly improved her current and future financial circumstances. Find what works in your family, but this isn’t all on you!