For many industries, a decent college education is a requirement. However, college isn’t exactly easy; from picking a major and career path to writing detailed term papers and theses, plenty of challenges stand in a student’s way. One of the greatest obstacles is the cost. Similar to buying a house or car, investing in a college education is one of the biggest financial moves that anyone will make.
College may be rewarding in terms of education, but it can destroy someone financially. However, it doesn’t have to be that way. If you establish a college fund, you can get the ball rolling and enjoy less debt.
Here are a few tips to start a college fund.
Determine the Best Way to Save
Starting a college fund isn’t as simple as it may seem. Most people can’t just throw over $60,000 in a bank account and call it a day. They need to have a savings plan in place if they want to keep things simple.
There are multiple types of saving plans to choose from including:
- 529 Plans
- Uniform Gift to Minors Act (UGMA) Accounts
- IRA Accounts
- Coverdell Education Savings Accounts
It’s important to remember that not every savings plan is for everyone. For instance, one might have an easier time having a 529 plan than an IRA. Do your research before investing in any of these plans.
Apply for a Scholarship
Because college can be so financially demanding, scholarships are the way to go. Scholarships are essentially how people can pay for college without going into debt. Furthermore, a scholarship can range from anything such as math and gymnastics.
For parents, it’s crucial to encourage a child to apply for a scholarship, so they don’t have to worry about the hardships that come with debt. With all the options out there, you’ll be hard-pressed to not find a scholarship that fits your interests.
Put in Time for Work
Getting a job is a surefire way to make money to put towards college. Aside from paying for tuition, a job also gives a person experience in a specific field that they can put on a resume later on. This is a great starting point for those looking to get hands-on experience for their dream job as well.
Being able to afford a college education isn’t always easy, but it is possible with a little advanced planning and strategic thinking.