Let’s assume that you’re a parent who’s got visions of a son or daughter standing on the college steps with a diploma in hand. But you’ve got lots of questions about how you’re going to be able to afford a college education for your child. Here are some tips from your Navy Federal Credit Union about saving for higher education that might help to clear up that picture.
First of all, even if your child is three days old (or in his or her teens for that matter), now is the best time to start saving. College costs are rising every year, so even if you can’t save a lot, try to save something on a regular basis. Setting a savings goal and breaking it down into installments that are manageable for your budget is a good way to get started.
Start by opening some kind of savings investment. Set aside small amounts of money regularly, and get it earning interest or dividends.
How risky you want your investments to be is up to you. Some people feel that when their kids are young, it’s worth taking a little bit more of a chance by putting their money in high-yield investments. As the kids get older and college gets closer, you can switch to lower risk investments.
