Setting aside money for your children's college education is an important thing parents should do. Having a fund for the schooling of kids will assist moms and dads with their financial needs.
According to Forbes, many people agree that saving for a college education is vital but still cannot set aside money for this. Citing statistics from the College Savings Foundation, only half of the population in the United States are allotting money for the schooling of their children.
It was also highlighted that only about half of this number were able to save $5,000. This amount is certainly not enough to support a $100,000-worth college degree in universities.
Education not a priority
Forbes' Janet Berry-Johnson said that people have bigger priorities when it comes to savings than education. "We have an emergency fund and we are not prioritizing college savings over our own retirement," she added.
She added that this reality pushes children, especially those eager to finish a degree, to earn money for themselves. They try to find scholarships or work after school hours to support their education.
According to The Simple Dollar, there are a lot of ways to save for a college education. Parents just need to choose the best and easiest way for them to fund their kid's schooling.
One is the 529 College Plan or the Qualified Tuition Programs. Here, parents are asked to invest money which they can withdraw for the education needs of their kids. This is offered in almost 30 states in the United States.
Prepaid education plans
Another way to allot money for education is through prepaid college tuition plans. The Simple Dollar said parents can already start paying for the education of their kids even if they are years away from college.
The same report said that through this method, parents can finance around 50 percent of what their kids need for their college fund. They can immediately turn their savings into money for the education of their children.
