Essential Strategies for Funding Your Child's College Education

August 6, 2025 - 18:32

When planning for your child's college education, understanding how much to save and which savings accounts to utilize is crucial. Experts recommend starting early to take advantage of compound interest, which can significantly increase your savings over time. A general guideline suggests aiming to save about one-third of the total cost of college, with the remainder potentially covered by scholarships, grants, and student loans.

Consider exploring various savings options, such as 529 plans, which offer tax advantages specifically for education expenses. These accounts allow your investments to grow tax-free and can be used for qualified education costs, making them a popular choice among parents.

Additionally, completing the Free Application for Federal Student Aid (FAFSA) is essential. This form determines your eligibility for federal financial aid, including grants and loans, which can ease the financial burden of college expenses. By staying informed and proactive, you can create a robust financial plan that supports your child's educational aspirations.