How to Help a Teen Save for College

Affording a college education becomes more expensive every year. A teen facing the daunting task of paying for college may be overwhelmed. Teaching your teen to save for college early is a great step to helping them learn fiscal responsibility.

Difficulty: Moderate

Instructions

1. Talk to your teen. Find out what type of college they want to attend. Learn their ideas on how to pay for it. Two-way communication is fundamental in any other dealings with your teen.

2. Establish financial goals. Locate the colleges that interest your child. Find out how much they cost to attend. Establish a total amount your teen must save.

3. Set up a savings plan. With a goal in mind, set up a plan to achieve it. Breaking down the amount into manageable chunks, such as weekly, monthly or yearly savings may assist your teen.

4. Check on savings progress. Schedule meetings with your teen to go over their savings' progress. Regular meetings will help reach the goals.

5. Adjust goals if necessary. Be prepared to change your goals with your teen. They may secure a different job. Your teen may change their mind about the college they wish to attend. A flexible goal is essential.

6. Encourage your teen to reach beyond their savings goals. Help your teen by encouraging them. You are helping to establish savings habits that will see them through the rest of their lives.

Tips & Warnings

• Different banks and credit unions have special accounts for teens saving for college. Be sure to ask at your financial institution.
• Financial aid and scholarships are also available. Have your teen check these sources for college funding.
• There are many scams out there for people looking for ways to pay for college. Be aware of them and make your teen aware of them.

Resources

• CNN Money has tips to save for college.
• US News has tips and articles for the college bound.