Nov 01, 2016 08:43 AM EDT
Finances Should Not Be An Obstacle in Getting A Degree, Here's How To Save for College The American Way
How could one save for something he or she does not know its scope? Apparently, millennial parents are found more concern than their predecessors because they have the information when they need it. Whatever worries them, they can just check it online.
Millennials in general, with the readied data, tend to figure things out easily for their family's expenses. They are the group that went through the burden of paying off their student loans as soon as they found a job, says The Wall Street Journal.
Parents always want the best for their children. And to spare themselves from the stress that they experience, some decide to even save earlier for their unborn children's educational plan. They constitute the 57% of American parents who are saving in real-time for their children's education in the future, according to Sallie Mae.
The success of saving enough for your children's tuition fees in advance relies on your discipline in setting aside the money for this. The most common way is depositing the fund in a savings account.
Accordingly, you don't get much from the 1% interest rate of your savings deposits in your ending balance than investing it in bank schemes that generate 5% annual return. That is true if you can afford the $30,000 initial deposit, as per Fool.
Meanwhile, the savings account is fine for security reasons. It is insured up to $250,000. However, it should not be used for emergency funds or else, you'll end up not saving at all. This is where setting goals are necessary.
The high cost of education does not worry millennial parents as they plan ahead before it even happens. Sallie Mae's statistics say so that most of them are ready to pay until their children get a degree. This is one of the advantages of the information technology. No one wants to be left behind, and everyone wants to go online!
Join the Conversation