At the heart of the American Dream is the belief that our children’s lives will be more secure and materially more comfortable than our own. Unfortunately for the majority of the next generation however, the easiest path to that life of security—a college education—threatens to burden them with a crippling debt load just to earn that advanced degree. Saving for college is something every parent dreams of doing for their child. But how can they afford it? With college tuition slated to continue outpacing family income for the conceivable future, it seems impossible. But not only can it be done, but with the right planning, it’s easier than you think.
How to Save for College
Setting up a plan about how to pay for college is closely akin to studying for a chemistry test. You can’t cram for a chemistry test, and the proverbial “pulling an all nighter,” is not an option when saving for your children’s college fund. Therefore, the secret to how to save for college, much like acing your chemistry test, is to do it continually, a little bit at a time, over an extended period.
Experts recommend the $2K rule to guide your savings plan. That means setting aside a suggested $2,000 per child every year for their education, in conjunction with a 529 Plan. A 529 Plan has some critical advantages that include:
- State tax benefits
- Boosts your college savings by 50%
- Consider pre-paid tuition plans
Of course, contributing consistently is the key to success.
Saving for College Is Easier with Americor
If you are wondering where to start in planning for your children’s college education, the rule of thumb is that you should always start saving earlier rather than later. Contact the financial experts here at Americor Financial to discover the best way to channel a portion of your savings towards your children’s education over the long term. Let us help you find out how to pay for college long before your kids begin to pick out their favorite school.