We are living in times when nothing is certain, not even your job. Things that you have accumulated today might not be there for you in the times to come. In order to ensure that your child’s future is not jeopardized owing to the volatility of the financial market, it becomes critical that you start saving for your child’s education from a younger age. If you are a new parent, or planning to experience the parental bliss, you must consider yourself lucky as you have the advantage of time by your side. With the growing inflation rate, by the time your child is ready to enroll for his/her graduation, a small saving today would ensure that you sail easily through the tide.
Since 1985, college education is the only sector in The United States, which has risen nearly 500%, registering a 17.24% growth annually. If we look closely at the current educational scenario, a two year college course would cost you around US$9,180 p.a. However, if your child opts for a four year course, it would cost around US$22,261 p.a. The figures also depend on the fact if he/she is going to a community, private or public university. It is estimated that in 2029, private college’s education would cost almost US$355,900. For a two year community college course, it would cost around US$35,700 as compared to today’s tuition fees of US$19,344 p.a.
Thus it does pay to invest in your child’s education to secure his/her future. Education plays an extremely important role in one’s life and statistics suggest how higher education can enhance one’s ability to earn more. An undergraduate earns around US$23,452 p.a., graduate or post graduate earns around US$55,000 and US$65,000p.a. respectively. Some of the best saving plans are 529 college savings plan, Coverdell Education Savings plan, and Your Roth IRA. These plans give you different features as per your requirement. For instance, in Your Roth IRA plan, you can utilize some amount of your retirement savings for your child’s education if you don’t have the extra cash to put into an exclusive child’s saving fund. With so many options available, secure your child’s future by investing in it today and witness your child reach the pinnacles of success.