September is the time when college students return to campus for another exciting academic year. Whether returning to the dorms to live on-campus or commuting to class, most students will have one thing in common: the weight of tuition costs.
For parents of high school children, this time of year poses a great opportunity to assess finances and determine how to pay for higher education. According to Sallie Mae, a federal education loan company, only 4 in 10 parents have started saving for their children’s higher education; however, 9 in 10 parents expect their children to go on to receive a higher education.
A great first step to saving for college is to ensure college savings are part of your financial plan’s future. Having a structured plan will allow you to set realistic and reachable goals as you accumulate savings, and reassures you are making steady progress.
Here are a few more tips to help you save up for secondary education:
- Try to start saving as soon as possible. Take advantage of time & compounding interest.
- Already have a regular savings account? Create a separate college savings account with automatic deposits and let your savings grow.
- Use a budgeting method to identify areas where you can cut down on spending and increase your saving.
- Have one-time monetary bonuses put right towards college savings.
Additionally, don’t be afraid to tell your friends or family you are trying to save for school. In lieu of a birthday present, perhaps they can contribute to your college fund!
It is important to check on your budget and goals frequently to track your progress. If you set it and forget it, you won’t be able to tell what is working for you. You can also experiment with increasing your contributions over time, so you can save even more. Start your quest to save money for college today!
Looking to open a savings account to start your college fund? Visit First Bank’s savings account page.