Once you’ve clearly defined your goal, develop a plan. Whether your need for the funds is 18 years or 18 months away, you should start preparing today. If you have an infant or are expecting a child, make a decision now to set aside educational funds before the avalanche of day to day responsibilities hits. Starting early, and saving a little at a time, will reduce the impact on the rest of your financial obligations, If you create a plan and think long term, you’ll be better prepared for tuition costs when they arrive.
Parents should consider taking three key actions with the birth of each child:
- Begin saving immediately.
- Add to the account regularly.
- Manage assets according to your risk tolerance and time horizon.
Even a small amount set aside from infancy, or during preschool years, or even the money you could be saving on your own auto and home insurance, can grow into a substantial sum by the time your child reaches high-school age. Since paying for college represents an extraordinary expense to most individuals and families, finding the money is always a challenge. Many people investigate several avenues.