Financing Child's Education

The primary step in creating a plan is estimating what the total price of your child's college education is going to be. The average tuition for a public college now averages about $10,000 for a year. At 5% inflation for a year, the estimated price per year 18 years would be roughly $24,000 (ten years from now the price would be about $16,000). Private colleges can be 2 to 3 times as much.
You should not let the numbers scare you. Some of your student's education may be disbursed for through student loans, financial aid, and scholarships . It is possible to economize the rest in case you begin early, contribute constantly, and invest soundly.
One thing worse than not economizing at all is to put your money in a money market or passbook savings account. To accumulate enough money to fund 4 years of education, you should not just begin early, but invest actively. Stock finances historically have always surpassed other investments over terms of 10 years or more. You should search for no-load (no payment to buy or sell) mutual finances with low costs.
You should not just park the money in a finance or two and then leave it. You need to review the fund performance at least yearly, and accommodate as necessary to under-performing finances. When your student is 5 years from beginning university, you need to start to shift the money into development and income stock funds plus bond funds, cutting your exposure to the market rises and falls while aiming to high returns.

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