College Savings Planning Tips

By Erik Neilson , last updated August 22, 2011

When it comes to saving for their child’s college education, many parents simply don’t know where to start. Saving for college can be difficult, but it doesn’t need to be as impossible as it often seems. By understanding what you can do on a daily basis to further along your child’s college savings, you can alleviate a great deal of stress and streamline your approach to building a college fund.



Don’t Waste Time

Creating a college fund is a big step, which is why many parents wait longer than they should to get things in gear. The fact is, the earlier you start contributing money to your child’s college fund, the less stressful and immediate the process will feel. One popular method is to start creating a college fund at the time of the child’s birth. Even if the child does not end up choosing to go to college, the savings will always come in handy.



Consider Education Savings Bonds

There are a variety of ways to take an investment and build upon it, many of which are quite risky and can end up causing more harm than good. One of the safest ways to go about building your child’s college fund is to take advantage of education savings bonds. Taking out a savings bond is a low-risk approach to investing, and will help you to rest easy knowing that your money is safe, which cannot be said for those who invest in riskier practices.



Consider Prepaid Tuition

One of the best ways to save money on your child’s education is to consider prepaid tuition. This allows you to lock in the costs of tuition and avoid the costs of inflation. If your child is set on attending a certain school, this is an extremely effective way to deal with paying for his or her education.

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