King Yellow
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Save a few thousand dollars each year for university. Put it in a bank account, so the interest will rise. Your kid will probably go to university in 11 years, and usually, for an average to good university, it costs $15,000 a year. Thus, for a four year university, you may need up to $60,000. If you save around $5000 a year no matter what circumstances, your child should be fine for university, and you may have some money left over later. |
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monkey boy
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Put some money in an ING account. It has great interest, more than any bank or credit union. Or you can set up a fund account from Sagemark Consulting/LIncoln Financial Advisors. |
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lansingstudent09101
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$20 a month for 10 years will give you $10400 before interest. That's enough to get through community college, although it's only about 1 semester at expensive/private universities. I recommend not just saving, but being smart about it when it gets here take ALL the classes he can at the Community college and transfer them to the bigger univ. first.
Ask your bank about Certificates of Deposit when you get around $1000 in a savings account, they can generate 5% or more, but don't have the same kind of risk as the stock market. |
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Michelle
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I agree, get a savings account or even a savings bond. College is highly expenisve even if you have money. Save a little a time and make sure u stay on your kids about his/her grades because scholarships come in handy! |
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?
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1 cent a day for 10 years is $36, you should therefore save about 10-15 cents a day to be sure you have enough. |
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kma22263
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Buy bonds, and put them in your name. If you put them in your child's name the college will consider that tuition and lower the amount of financial aid for which your kid may be eligible. Also.. tax breaks!
If you go with I Bonds, you pay the face value. If you get EE Bonds you pay half the face value (but it takes longer for them to equal the face value).
Also set up an education IRA with Vanguard. |
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krazy_red_head_86
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Invest your money. Try putting it in a savings account with ING....great rates and youll earn more money. |
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blueblast66
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a mutual fund or an insurance
some companies offer insurance policies for children so that when they get adults, the premia is paid back with some interest |
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funnyhiperchick
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go to a banke and get an acount with intrest |
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adamdiran
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First off... Theres a quote you should remember.
"Compound interest is the most powerful force in the universe."
-Albert Einstein
I say that because the earlier you save and start earning interest the better.
You're looking at needing the money in 11 years. A long term investment. Your best bet is probably the Stock Market. Over its long history its returned about 10% a year. Sometimes it goes up, sometimes it goes down, but you're looking long term and long term its your best bet.
Given that you probably don't want to be keeping too close an eye on your college fund I'd buy a mutual fund and let the fund manage the money. I'd also spread the money across multiple funds.
I'd avoid bonds at this particular moment because theres every indication that interest rates are going to rise. |
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carl
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put money from ur salary weekly or monthly on his savings account. |
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good guy
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rob a bank |
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jyd9999
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prepay his tuition |
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Sugarbear
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I agree with many of the previous answers that refer to special education accounts with banks have have special tax status. I also want to remind that in many cases that I have seen, it's always best to set up some sort of "forced savings". It's easier to part with $50 a month in the form of an automatic transfer from your bank account than it is to do a $600 transfer at the end of a year. Since we have no idea what kind of college your child will end up attending, I recommend erring on the side of caution. I would probably look at saving about $100 a month and depending on what your education account allows you to invest in, you should be able to sock away quite a bit in 11 years. I would hope that you stick to things that are low risk with moderate to consertaive returns as opposed to gambling on high risk high yields. A childs education shouldn't be gambled away.
On a separate note, saving $100 isn't that hard a month. Case in point, I love to point out David Bach's Latte Factor. If you skip having a Starbucks Latte which is approximately $5 and go with regular coffee you brew at home, you can save about $100 a month which is in turn $1200 a year, which is $13,200 in 11 years (not even calculating for interest). Find a few of your Latte Factors and your kid will be able to go to Harvard. |
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so what
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If you're working, try to put aside maybe $25-$50 every pay period. If you're not working, whenever you have some spare change or some bills that you can spare, put that aside too. I've managed to save over $4000 for one of my daughters before she even turned two. My 6 month old has over $1200 saved up now. Put your child's money in a savings acct that accrues interest (preferably monthly). Also, give your child some money when you get back your yearly taxes (it's because of your child that you're even getting some extra income!). Do this and i'm sure your child will have some money for college! |
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tigercutie28
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open a college savings fund that is tax interest free. it will accure money and is deductible on your yearly taxes. |
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antiquity
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You can check with banks.Banks have policies for kids' education . Bank charges premium as per the policy amount ,
and releases funds (premium+ interest earned) as decided by the policy taker(parents/guardian) and bank.
Some of the policies also insure the policy taker . |
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Yeah...well.......
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illegal child labor, This child is 7, what a good little worker bee....... |
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