Understanding the Finances for College

Author:
Publish date:
Updated on
PicMonkey Collage

The start of another school year can elicit many feelings. But one thing's certain: it's one year closer to sending your child off to college. Whether your child is off to the first day of kindergarten or their freshman year of high school, it's never too early to start saving. With the cost of college rising more than 50% over the past 10 years, how can you make sure that you're financially prepared?

The College Savings Plans Network (CSPN) offers convenient tools and objective information to help families make informed decisions about saving for college. With September declared as College Savings Month by Congress, representative from CSPN are available to help you plan your child's educational future and discuss the following:

Understanding the Finances for College

  • 529 Basics: What is a 529 plan? How does it work? When should parents start saving for their children's college education?
  • Calculating Costs: What would it cost to pay tuition for a baby that is born today? CSPN's College Cost Calculator is designed to help families estimate how much college may cost when their student is ready to enroll.
  • Saving vs.Borrowing: A family that saves $200 a month can accumulate $34,433 over 18 years. Borrowing that same amount of money at a 6.8% interest and repaying it over a 10-year term can cost nearly $400 per month in interest. Considering that borrowing the same amount of money that could have been saved up is nearly twice as expensive, how can families set and meet realistic savings goals now to avoid repaying daunting college loans later?
  • Education pays: College graduates earn an average of $1 million more than high school graduates during their careers. How can investing in a college education with college savings pay for itself in the long-run?
  • State by State: CPSN's website features a 529 Plan Comparison by State. How do plans compare state by state? Can you enroll in an out-of-state plan? What are the benefits to enrolling in an in-state plan?

For more information, please visit: www.CollegeSavings.org

Momtrends was not paid for this post about understanding the finances for college

Related Articles