Start Saving Early for Your Child’s College Education

The word college is synonymous with costs because if it’s not all the textbooks you require, it’s a laptop and the actual college fees. The increasing cost for higher education is beyond many people’s reach, so just how are you going to pay for your tuition fees, whether you opt for on-line tuition or whether you opt to attend a regular college? 

 

Save money with home repairs

 

These days it’s not easy putting money away for home maintenance. If you’re facing emergency repairs because your swimming pool pump and refrigerator have both packed up together, you may secretly be wishing you’d never sent your child off to college as you could be using that money.

 

The only way to never have thoughts like this is to rather rely on a home warranty. The best for Ohio warranties can literally save you thousands of dollars on repairs. House Method is a brilliant resource – a veritable toolkit – for those wanting to maintain their homes with ease and affordability.

 

The reviews they provide are totally unbiased which means you can research the different home warranty providers that they’ve selected and get help with finding the best one at the most affordable cost.

 

Public loans a better deal

 

If you haven’t been able to save sufficient funds for your child’s college education, federal loans are granted by the government. There are quite a few public loan options available, with the two most recognized ones being the Perkins Loan as well as the Stafford Loan. 

 

Unsubsidized Stafford loans are available to students regardless of their financial need. These are low-interest loans and when applying for one of them, the first thing to do is to fill in the Free Application for Federal Student Aid form, commonly known as a FAFSA form. 

 

The financial aid office at the college will receive this form and with the information provided, they will be able to choose the right loan program for you.

 

Save for college

 

Many families save through Ohio’s 529 Plan. Saving for college is hugely important and this is a fantastic way to say for future college days. The tax-advantaged savings plan has two major plans - savings plans and prepaid tuition plans.

 

The savings plans are tax-deferred, with withdrawals being tax-free if they’re used for education expenses. With the Prepaid tuition plans, college and university fees can be paid in advance with the advantage being that you actually lock in today’s rates. 

 

You can open these savings plans through a professional financial advisor and apart from offering tax-free earnings, they are professionally managed too. The money can be invested in a number of assets such as mutual funds.

 

Input from your child

 

Children should know that every good thing comes with a price attached to it. Education plans for your child provide you with the chance to put your money into some or other investment vehicle that will then allow your money to grow over the long-term. The earlier you start, the more time the money has to grow. 

Kids shouldn’t just assume that college comes naturally. Parents should talk to their children about a savings plan so they understand that studying beyond high school only comes to those who plan and set goals. If you do give your child an allowance when they’re small, subtract an amount each month from them.

Explain that this is going towards a joint savings account for their studies, to which you will also be contributing. When they’re old enough, you can also encourage them to get a part-time job so they can earn and save money towards their studies.

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