How to Raise Money for College for 10-12 Year Old Pre-Teens
Saving money for college nowadays is one of the most daunting parts of raising a child for some parents. College is not cheap, and with the economy the way it is, many parents think that saving for college is impossible. But the great news is that with more people going to college than ever before, there's more help out there to send your child to the school of their dreams. You just have to know where to look and what programs are available for you.
Other People Are Reading
Instructions
-
Savings 101
-
1
Start with a State 529 College Savings Program. You can do this through state-sponsored investment accounts that the College Board notes are tax free and usable at any state or university.
-
2
Choose a State 529 Prepaid College Program. These are a bit different, because they are designed to pay for public schools in your state. The best part is that these let you "lock into the tuition price being charged at the state's public universities in the year when you're enrolled in the program." Say you start saving today, when your daughter is 10. In 8 years when she hits college age, you'll be paying tuition rates from this year, not the inflated future price. Remember, these funds can be used for out-of-state colleges, but, according to College Board, you'll probably have to pay the difference in price between the prepaid tuition in your home state and the tuition at the out-of-state school.
-
-
3
Open a Coverdell Education Savings Accounts (ESA). This account will allow you to put away up to $2,000 a year per child. If your son is 11 and you start now, by the time he's 18 you'll have $14,000 plus interest to help pay for college. According to College Board, this is also a tax-free investment.
-
1
Tips & Warnings
Remember, the sooner you start saving, the better. It may seem too early to begin saving for a child who's only 10 to 12 years old, but college will sneak up on you. Start saving as soon as possible. Saving for college takes planning and forethought, but it definitely pays off in the end.
