This article was about parents who are saving for college but they frequently raid into their retirement funds or have a plan to do so. College tuition is skyrocketing which makes parents rethink about paying for it. More parents are currently saving for their retirement fund rather than their child's college tuition.
To help jump start your college savings, here are a few tips from Kantrowitz, who is also publisher of the financial aid information site FinAid.org:
- Make savings automatic, so you don't have to think to save.
- Increase the amount you save each year. You will quickly get used to not having the money in your checking account.
- Whenever you get a windfall, such as a big income tax refund or inheritance, contribute all or part of it to the college savings plan.
- When expenses change, resulting in some savings, devote the savings to college. "When your child no longer needs diapers or daycare, for example, redirect the savings to their college fund," Kantrowitz says.
- Use a rebating program, like Upromise, to help build your 529 plan faster.
- Finally, get grandparents and other relatives involved. Have them contribute to your children's 529 plans instead of giving gifts on birthdays and holidays.
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