We’ve all heard of the American Dream, but did you know that one of the top reasons parents want their kids to go to college is that it’s a part of that dream?
Being able to tell your friends your child is attending college is a proud moment. It feels like a huge accomplishment, no matter the cost. This aspiration has led to the number of immigrants with a higher education increasing at more than double the rate of kids who were born in the United States.
The cost of a college education is constantly rising. Over the last year, fees increased by nearly 2 percent overall for most schools in-state, even public ones. The average increase from private colleges was at a 3 percent hike in tuition fees.
Add to this housing and food costs and books, and the price of college is rapidly becoming a financial burden few families can afford. Although parents know that a college graduate will earn more money once they’ve graduated, getting the qualification can be financially daunting, if not impossible.
Saving for college is the best way to make sure your kid gets the boost they need to succeed. The average cost of college is around $20,000 for in-state public schools, while nonprofit private schools, only including tuition, fees, and room and board it jumps to over $46,000!
Costs continue to rise every year, so saving for college has to take into account inflation on every level. Housing costs go up. Food will cost more and so will everything else, including sports equipment if they play sports.
Saving for college in 2019 means you have to set a target and aim for it over the period it will take for your child to get to the age they will be ready for higher education. It can be a scary task, given all the factors that have to be considered.
Working out which type of college your child will attend will also give you a better idea of the amount required. If your kid will be going to a local community college rather than an Ivy League school, you won’t have to save nearly as much and may not need any student loans. If they are attending locally, they can still stay at home rather than having to fork out cash for housing and food.
College remains part of the American dream. Make sure that you can afford it by planning early. With good professional advice and sound investments, it's achievable. Ask about the 529 plans that can be used for education costs.
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