It’s not just the freshly graduated from High School that worry about tuition. Parents of newborns or even newlyweds planning their future must take into account the costs associated with college planning. Here are a few guidelines to take the “thought process” to “action process” so that you’re not fretting at the 11th hour on how things are going to get done.
- Setting the Cash Aside: You can’t set up a 529 college savings plan until baby has a social security number, but now is the time to start discussing how you’re going to save the cash to stash. Since most 529 plans call for contributions as low as 25 to get started, that should be a pretty easy allocation.
- Develop a Strategy: You’re going to be all excited about the college plan when you first get started,, but the secret to success if to develop a strategy that will keep those contributions rolling in well after the excitement has waned. You need to commit to the notion that saving a little over a long period of time can add up to a lot, so stay committed to the amount and don’t ever view it as insignificant enough to skip once in awhile.
- Talk to Relatives: Everyone is eager to help when baby comes along so take advantage of the offers while the offers are abundant. Let family members know that even the smallest contribution to baby’s future will be appreciated and maybe even set up ongoing goals and objectives like “Christmas stocking stuffers” or “Easter nest egg” contributions. Have fun with it and take advantage of everyone’s willingness to help.
- Develop a Few New Habits: If you’ve ever had the notion that a 5 bill is kind of insignificant, consider putting every 5 bill you come across aside for baby’s future. Whenever you receive change back from a cash transaction that produces a 5 bill immediately set that cash aside in a special spot. Every three or four months take a look at how much you’ve accumulated and you’ll most likely be pleasantly surprised. And the best part is that you’ll more than likely never miss the 5 bill from your wallet in the first place!
So there you have it some handy to help with one of the most important aspects of raising a child. The secret is in planning for this life event with as much fervor as you planned before even bringing baby into the world.