Paying for College: Setting Realistic Expectations
Most parents have the best intentions when it comes to sending their children to college. The hard truth though is that money only goes so far and there may have been bills that were more important at the time. This means that you may not have enough money put away to send your children to college. While this can be difficult to accept, there are a few things you can do to help prepare your children for what’s to come.
Create a Savings Account
The first thing you need to do, if you haven’t done so already, is to setup a savings account for your child’s college fund. If your child is still a few years away from college, you should heavily consider a 529 plan which allows the money to grow without being taxed. Once the money is deducted, and used for college expenses, it is also tax-free. This plan can save you and your child a lot of money on taxes.
Encourage Your Child to Earn Money Leading Up to College
If your child is interested in going to college, but knows that money is tight, you can encourage your child to get a part-time job and help save for the expenses. To make the idea of a job more appealing, ask that your child only add 50% of her paycheck to the savings account you set up. You can also tell them that you will match whatever amount she puts into the account each week, up to a certain amount.
Talk to Your Child About Financial Aid
It’s important to discuss all the options with your child when it comes to funding his education. Depending on your income, your child may qualify for grants, but his grades may also be good enough to get scholarships. In some cases, he may qualify for both. You should also encourage your child to apply for work study programs so that he can earn money while attending college.
Agree to Co-Sign for a Loan Only If Your Child Gets a Job
A loan should be a last resort and you should make sure that you won’t get stuck paying the bill. A good way to do this is to make your child get a job before co-signing for a loan and insisting that the she get a loan that requires payments while she attends college. The money made from her job can be used to make the payments. Remember to only use this method if your child is responsible and truly wants to attend college. Otherwise, you may get stuck with the payments or ruined credit.
Not all parents can fund their child’s education, but that doesn’t mean you can’t help them come up with solutions. Whether it’s trying to save or applying for financial aid, you can send your child to college, it just takes a bit of work and time.
About the Author: Kenton Laird is an EKG technician who loves reading ekgtechniciantraining.net and other relevant sites as he works to advance his career. He has a 16 year old daughter who is not only contributing to her college savings account but who already has a plan for self-employment while in school!
Published in Education, Finance