Image by Murray State via Flickr
College education is an expensive affair. In the United States, every young child dreams of it after a point of time. Your child might want to study in the very best college. Even though your child might not express it, internally your child wishes to study in a college of his or her choice.
You would not want to disappoint your child. So what do you do? Instead of building a mountain in one day, you can take small steps everyday to build that mountain. Save everyday to make a corpus of money to finance your child’s college education.
When you save in small amounts starting from today, you will not feel the pinch of having lost a lot of money if you were to pay it at that time. And you would not have felt the loss of investing small portions of money every day.
This is the safest and most successful strategy you can use. Don’t invest a lot of money. Just a little bit would do. Encourage your kids to start saving money too. Encourage them to do part-time work, and allocate a portion their earned money for college education.
Or you can take a college education loan from your bank and pay towards it until the time your child goes to college. If you take one such loan now, over time it will cost you less than if you were to take one at the time when your child goes to college.
That’s because interest rates might not be the same now and then. And also, you must factor in things like inflation too.
