Will a college savings account help you get into college?

Answer 1

It will definately give you some smart and effective ways to save up for college, which is growing increasingly in cost. It can also help you budget and plan for which academic institution you plan on attending.

Answer 2

College tuition is increasing every year. If you have a child who will one day attend college, it is important to get started saving as soon as possible. The earlier you start saving, the more time your money will have to grow. It is never too soon to start saving for your child's college education. Some parents even open up student savings accounts before their child is even born. Here are some things you need to know about college savings accounts.

Research State And Federal Savings Options

Some states run special savings accounts designed for parents who want to help their child save up for college. These savings accounts usually have a low minimum deposit and often offer guaranteed growth. These programs vary from state to state, so parents should meet with a tax preparer or financial expert to discuss their college savings options.

Encourage Relatives To Contribute

Once you have a savings account set up, you should encourage your relatives to contribute to your child's future education costs. Relatives often do not know what to purchase as a gift for your child. They buy toys and clothes that your child will quickly outgrow. However, if your relatives know about your child's student savings account, they will be happy to contribute.

Get Your Student Involved In The Saving Process

If your child is old enough, you should try to involve them in the saving process. Helping your child learn to save can teach them important financial basics. Encourage your child to get a summer job once they are in their teens. Ask them to save a portion of their earnings for college. Your child will find watching their savings account grow very rewarding.

Set Aside Some Money For Living Expenses

Make sure that before your student goes to college they have a standard student checking account from a bank with branches in the town where they will be attending school. Even if your child will be living in a college dorm they will still need to pay for some basic items, such as toiletries and movie tickets. Keep money for tuition in a separate account to keep your student's spending in check.