More Families Saving For College But Still Falling Short
With the rising costs of college tuition, more and more families are finding themselves in a race against time as they attempt to salt aside money to help pay for their kids college education. In spite of the fact that more families are choosing to save, they are still falling behind as the rising tuition makes it more and more difficult to pay for an education.
How can I Save For My Kid’s College When I’m Still Paying Off My Own Education?
One of the biggest hurdles for families trying to save for college education costs, is their own personal debt level. In many cases it’s difficult to imagine saving for a kid’s future education when you’re still trying to pay off your own college debt. Yet compared to previous years, a record number of 69% of families have started saving for college. A recent survey indicates that parents are anticipating having to pay for around 60% of college costs out of pocket and the average family has around $5,000 put aside in college savings.
529 College Savings Plans Are A Great Way to Save For College
One great option for college savings that offers significant tax advantages is a 529 college savings plan. With the rising college expenses, any kind of plan that also offers tax advantages is worth considering. More and more Americans are catching on to this trend and are opening up 529 plans for their college savings.
Cutting College Costs
Another way to help bolster college savings is to try and cut costs wherever possible. Some tangible ways include having your child attend a public school, live at home, take AP Classes in high school, online classes, and graduating in fewer semesters. With the college degree becoming like the “new” high school degree, due to the increasing numbers of college grads, it becomes even more important to try and help your child get through college unscathed by college debt.
For more information on getting ahead with college savings speak to a Redhawk wealth advisor near you today.