By , ,
Published May 08, 2015
Wednesday, May 29 is National College Savings Day. It’s never too early to start thinking about funding your child’s education. With college tuition costs upwards of $20,000 a year and student loan debt topping an estimated $1.1 trillion, higher education has become increasingly unaffordable for most families.
Wednesday's designated day highlights the importance of saving for college through tax-advantaged 529 plans, which ease a family’s financial burden by allowing for tax-free growth and withdrawals of earnings for college-related expenses.
Setting up an automatic monthly deposit in a 529 plan is an excellent option for many families. Some states even offer tax deductions or credits for plan contributions. Check out the special incentives, contests, and promotions your state may be offering to boost participation in their 529 savings program—and see if it’s a fit for you.
[pullquote]
Unfortunately, most families could never afford to put multiple children through school at a private university, regardless of how aggressively they save.
My parents were in that position. My mom ran a beauty salon in our home, and dad worked in a factory.
Even if they stretched their budget to stash away $50 per month for college, they could never have footed the bill for the $50,000-per-year education my brother and I were eventually able to attain through scholarships.
While I highly encourage a habit of saving toward a college education, there is a priceless investment parents can make that can yield enormous returns: investing directly in the lives of your children and encouraging your future scholars to invest in themselves.
The payoff could mean hundreds of thousands of dollars in scholarship money for your son or daughter’s college education.
In Malcolm Gladwell’s book "Outliers," he analyzes research based on a sample of child geniuses.
The study follows these high-IQ children into adulthood, noting that some of them became extremely successful while others fell far below their potential.
Only one factor determined the difference: “a community around them that prepared them properly for the world.”
You can make a huge difference in growing your student into a success and helping him or her stand out to scholarship committees. And that investment can open the door to the billions of dollars given away in scholarships every year.
I feel very fortunate that I was taught certain core values that ultimately laid the foundation for me to win $500,000 in free money for college. These “scholar qualities” (as I refer to them in my book "Confessions of a Scholarship Winner" are investments any parent can make in his or her child. When properly directed, these qualities can turn even an average student like I was into a scholar—and a scholarship winner.
Investing is all about multiplying our resources. Use today to think about your strategic plan for ensuring your student’s access to the higher education of his or her dreams. For parents, making frequent "deposits" into your child’s life—and not just a savings plan—can be your greatest investment toward your student’s success!
https://www.foxnews.com/opinion/on-national-college-savings-day-heres-how-to-invest-in-your-childs-future