Building your child’s education fund, one brick at a time
- Brian Smith
- 2 hours ago
- 2 min read
Every solid house starts with a good blueprint and a strong foundation. Saving for a child's education is very similar.
College costs can seem daunting. In addition to tuition, you'll need to account for housing and food, books and supplies, transportation and other expenses. The average annual budget at an in-state public university runs around $30,990 today, and a private school is $65,470 according to the College Board. While most families won’t pay a college’s list price, you’ll still want to start saving as early as possible to be ready when your child is.
Lay the foundation early. You don’t have to wait until you have the perfect set of plans to start building. There are specific accounts designed to save for education and some do not require a minimum opening deposit. Setting up automatic recurring contributions, even modest ones, lets you build steadily over time without requiring constant attention.
As your child ages, look for ways to redirect expenses you no longer have towards the build. For example, daycare costs, which can exceed $1,000 a month, can be shifted into a college savings account once your child enters school. Tax refunds and annual bonuses make excellent additional contributions. And others can pitch in – instead of birthday or holiday toys, ask grandparents or relatives to contribute directly to a college savings account.
