Parents do not need a special study done to realize that:
- College is expensive!
- Children grow up quickly!
- Now is the time to start saving for college!
Families really cannot save enough for college. A ball park average figure for expenses parents have to pay for a four-year degree is $25,000 per year, which means $100,000. Consider starting a 529 college savings plan as soon as the child is born. A $200 contribution for 18 years at an 7% annual return, could possibly get you close to $100,000. Of course, an investment account will not be guaranteed to get 7% return every year. The basic point is to start saving early and consider it an investment in your child’s future and not an expense. By the way, grandparents and friends may want to consider helping with contributions.