The main mistake parents are making is that they’re not saving any money. And many of those who are saving, aren't putting away enough. Setting cash aside so that your kids have a better life may seem like an obvious thing to do, but many parents aren’t saving anything, let alone doing it for their kids.
One of the most important items to save for is a college education. However, 38 percent of American parents have not started saving any money at all for their kids' college costs. If you want your child to go to a college, you may want to start getting your finances in order as early as possible.
In 2018-2019, the average cost of going to college, including tuition and all the fees attached is already almost unattainable for many folks without taking on student debt. In-state schools average $21,370 for one year. A private college will set you back a whopping $48,510 for a year. Every year for the past decade colleges have been increasing fees by 5 percent. In another 15 years, be prepared to pay $191,485 for a state school. That’s almost 200k! If you are thinking of sending your son or daughter to a private college, you’ll be paying an eye-watering $434,671.
Having children is expensive. The USDA calculated that by the time your child has reached the age of 18, you will have spent somewhere around $233,610. Add to that college expenses, and you can see why saving money is so important.
Raising a family brings you joy, a sense of accomplishment and wonder. But it also brings stress and worry.
Worrying about putting food on the table and paying for essentials like clothing and so on can be very stressful. Add to this education costs, and you will begin to sweat. It is a mistake not to save. You have to make sure you have your finances squared away, or your children will be going without certain things, or you will be making some sacrifices. Saving early on will accrue over time and will give you and your family peace of mind in the long term. So start saving as soon as possible. You won’t regret it.
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