Preparing For Your Child’s College Education

Parents could only save so much for their child’s elementary, middle and high school education, but college, with its whopping £75,000 price tag (just for public colleges), is something that will be difficult to save without proper financial planning. Here are a few ways you could save up for your child’s college education.

1.     Public Vs. Private

Many differences in the quality of education, courses, specialities and teaching mechanisms exist between both public and private colleges and universities. Public colleges might cost around £75,000 to £90,000 in total for four years; private colleges can cost around £145,000 to £160,000 for the same span of time. Choose carefully while considering the other items as well.

2.     Estimate the Total Costs

While you know the numbers for public colleges are five digits and private ones six digits, you should not let it scare you; it is possible that your child could gain scholarships for excelling in certain fields that make them a college or university’s asset. You could also get financial aid and student loans. You’ll need a separate financial plan for student loans (like we did with my son).

3.     Don’t Save, Invest

One thing most households today do is save money and leave it in a bank. That is not a viable option. The best way to finance four years of your child’s college education is through investing in financial instruments. Invest aggressively. Stock funds historically have exceeded other investments over long periods of 10 to 15 years. With enough money, you could cash in and have everything, including your debts, settled at once.