-
Step 1
The best time to start a college fund for your child is shortly after they are born. College tuition is quite expensive. Based on statistics from 2007, it is estimated that the cost of a four year college averages about $120,000. Private Colleges and Universities tend to be more expensive.
-
Step 2
Parents should open up a College fund or Trust account for their child's education. The good thing about a College fund is that the money can only be withdrawn to pay for expenses associated with College. The fund should be able to accumulate a substantial amount of money over an 18 year period.
-
Step 3
My best advice, any money your child receive on Birthdays, Christmas, Graduation etc, should be placed in this fund. Establishing a College fund will help releive some financial burdeon from the parents and the student. You can contact your financial institution to inquire about these type of accounts. It is best to place the account in both the parents and child's name. If you currently have a financial consultant, he or she can surely help you with setting up the fund.
