William Penn Life, 2000 (35. évfolyam, 1-12. szám)
2000-05-01 / 5. szám
I S of Paying for College Chest pains. Shortness of breath. Sweaty palms. Someone having a heart attack? No, just a parent trying to figure out how to pay for a child's college education. Making your child's education affordable seems like an unwinnable battle, but things are not as bad as they seem. Yes, the cost of a college education continues to rise, but tuition and fees have increased less than 5 percent over the last year. Experts say this low rate of growth in costs should continue over the next decade. The key to success is planning. What follows is basic information about planning financially for your child's post-secondary education. You won’t find all the answers you seek here, but-we hope—you will discover what you need to do, and where you can go for help, to formulate a successful strategy.. .and ease your mind at least a little bit. from the U.S. Department of Education Saving money is the primary way to prepare for the costs of college. Setting aside a certain amount every month or each payday will help build up a fund for college. In order to set up a savings schedule, you'll need to think about where your child might attend college, how much that type of college might cost and how much you can afford to save. Keep in mind that colleges of the same type have a range of costs and your child may be able to attend one that is less expensive. You can also pay part of the costs from your earnings while your child is attending school. In addition, your child may also be able to meet some of the costs of college by working during the school year or during the summer. Finally, some federal, state and other student financial aid may be available, including loans to you and to your college-bound child. Saving Money You will also want to think about the kind of savings instrument to use or what kind of investment to make. By putting your money in some kind of savings instrument or investment, you can set aside small amounts of money regularly and the money will earn interest or dividends. The keys here are starting early and getting the best interest rate. The higher the interest and the earlier you begin to save, the less you need to set aside each month. For example, if you start saving when your child is bom, you will have 18 years to save. By putting $32 a month in an account earning 4 percent interest, you will save $10,099 by the time your newborn is ready for college. However, if you don't start to save until your child is 16, and you use the same 4 percent interest-bearing account, you would have to set aside $401 each month to save $10,000 by college time. The lesson is simple and worth Parents What YOU Can Do ★ Start saving for your child’s education as soon as you can. ★ Get your kids to start saving their own money for college while they’re in grade school. ★ Sit down with your teenagers and discuss their plans for the future-career, schools and how to pay for it. ★ Investigate financial aid opportunities. You definitely won’t receive an aid package if you don’t ask. 4 Willi» Phi Lile, May 2000
