Parents - Should You Save Or Borrow for Your Child's College Education?

Many parents think that their child can justhead start in life and education and no debt is a
borrow money whenever they start to attendwonderful way to start.
college. Most adults, who have children that wentThe bottom line is, no matter whether your
to college, had to pay for college themselves. It isparents save a lot of money, a little bit of money,
also true that if you have a lot of money in theor no money, you will still probably have to come
bank and investments, then your child will probablyout of pocket some to attend college. If you are
not qualify for very much financially. The moreconsidering a two-year or a technical college,
money you have, the higher your expectedthere are ways to attend without paying money.
family contribution will be from the college yourEven if you do have to pay, it will be a very
child is attending. When this number goes up, theminimal amount. It is the four year colleges and
number for financial aid goes down.universities, especially out of state, that will cost
If you have a young child, you might consideryour family a lot of money. If you can stay
starting a cash account at your home. You canin-state, live at home, and attend a four year
take out a little bit of money each paycheck anduniversity locally for 50% of the cost that you
start saving money at your home. This is onewould pay for attending college out of state, then
way to not show as much in savings at yourstay home.
bank.Many states have a variety of four-year colleges
A good rule of thumb is a dollar saved means aand universities within the state. If you want to
dollar you do not have to borrow. This applies toget away from your hometown, then you should
all areas of life. It is up to each individual family ifconsider staying within your state, but just going
they help their child with college expenses. Manyto another town and attending a four-year
families want to help their children get a collegeuniversity. This is a strategy that will save you
education without going into debt. If you have theand your family lots of money. There is no point
money and can afford to do so, it will be veryin borrowing 30 or $40,000 in student loans, if you
generous of you. Giving your child or children ado not have to.