Parents Should Start Saving Early for College

College costs are rising every year, and student loan debt is becoming a problem for fresh graduates. It’s becoming clear that the best way to save for college is for parents to save early and often.

Preferably, parents should start saving as soon as their child is conceived. Make time your friend: the longer you save, the more resources your children will have by the time they do get to college.

You don’t have to save big immediately. You may start out by cutting expenses wherever you can, from groceries to your lunch in the office. The important thing is that you develop the habit of saving.

After you’ve developed the habit, start setting savings goals. Preferably, the savings goal you set should increase year after year. This will help motivate you to keep on saving. In addition, you’ll be able to track your progress and assess whether or not you need to improve your savings habits.

Other Money saving tips

You may want to sign up for payroll deductions. This will allow you to move money from your checking account to a savings account specifically for your children’s college education.

Remember that the savings account you put up for college is under your (the parents) name and not the child’s name. A savings account under the parents name won’t affect the child’s financial aid eligibility as much as a savings account under the child’s name.

Don’t be ashamed to ask help from your relatives. Statistics show that 60% of grandparents are willing to help their grandchildren go through college. Of course, you should make it a point to maintain close family ties, because the better your relationships with your relatives and in-laws, the better the chances that they will help you out.

Lastly, avoid spending windfalls, such as an income bonus, tax refunds or any inheritance that you receive. Consider these blessings opportunities to save more for the future of your children.

Sign up on the box at the right to see what other school cost saving options are available to you.