We have all heard it before, from the time we were children – you want to start saving for college early. When previous generations had children, they were offered to start bank accounts and trust funds for their children’s college education. Slowly but surely, this has faded out. Now, once a student graduates high school, they’re launched into the adult world and college, in some cases, can be utterly out of the financial question. This is why we are seeing more and more students take out student loans, and in many cases, these students aren’t even able to pay their loans off at a reasonable pace.
Why now
Starting early and preparing for their future has become more critical than ever. With the increasing expectation that individuals applying for skills jobs will have a college degree, the need to be able to afford college is vastly important. This is where the role of the parent comes in. It’s become essential to teach your children to start saving for college early, whether that means nickels and dimes, allowance money, or a part-time job when they’re of age. However, it’s also important that you, as the parent, help your child save for college. Your influence and guidance will help motivate them to take their savings plan seriously.
Set the Example
Discuss savings plans your child early on. Work with them to create a plan and devise a goal for each month or even year. Allowing your children to grow and learn how to save money not only sets them up for their future and saves them from a lifetime of repaying student loans, but it also enables them to learn how to budget properly and use their money responsibly. College preparation can be difficult and intimidating, but if you teach the habit of responsible money handling to your child early, budgeting will be one less worry for the both of you.
Financial Aid
Saving for college is a huge deal for your child. It is a big responsibility and when the time finally comes for them to go off to college, be sure that they know that it’s alright if they don’t have the full tuition amount. There are other ways to receive financial aid to help them make up the difference. There are resources for filling out an application for FAFSA and for finding scholarships that can help them pay for their education. If have the lessons of working hard and saving instilled in them when they are young, they will be able to better manage their finances and remain as much out of debt as possible with financial aid when it comes to college.
Long-Lasting Effects
Therefore, it becomes evident that teaching kids how to save for college is essential. College tuition is between $5000 and $60000 a semester, so starting to save early is not only logical, but it also helps to prepare your kids to not be easily intimidated by college’s price tag. Studies have shown that children who save money for college are far more likely to attend college than children who don’t.
The life lessons learned by actively saving money in their childhood will set your child up for success moving forward, which, ultimately, should be every parent’s hopes. This is why it is important to have your child help save for college—it sets them up for a lifetime of success.