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Financial planning for your child’s college education

Bringing up one’s children right is an immense achievement, and part of the achievement is to provide them with the best education possible. This makes it imperative for parents to consider college fee early on, and to begin financial planning to successfully provide for it when required.

Unexpected roadblocks

An important benefit of having taught children the value of money appears when they go to college. For even the most meticulously laid out budget plans can be shattered by an overspending spree by unsupervised youngsters. There may be other reasons as well for sudden deviation from set budget, such as:

  • Irresponsible spending at college, resulting from new found freedom and pressure to belong
  • Tuition costs of the college exceeds the initially speculated range
  • Credit card account trouble, specially from new users
  • Unexpectedly high living expenditures in the area
  • Travel costs to and from college, and during break
  • Rocketing long-distance bills, if child lives in a dormitory

Making kids financially responsible

It helps a lot in such circumstances if the children themselves try their best to minimize expenses and ensure efficient spending. For this, they need to have been in the habit of handling their own money since long before they go to college
Besides maturity about general expenses, children also need to have a clear understanding of credit card usage and hazards. For this, parents should set themselves as good role models, and try and pass on required habits of prudence. Of course, if parents have made mistakes with their credit card handling, then they should make it clear to children so they may avoid similar mistakes.
In case children do make mistakes with their credit cards and end up exceeding the credit card limit it is better to not immediately bail them out. It is important to first instill in them habits and wisdom to ensure avoidance of similar incidences in the future.

Supplements to savings

Besides their own savings, parents can also use financial tools available at their disposal from commercial institutions specializing in education loans.
Students who show considerable academic standing, exceptional talent and abilities at sports are often desired by colleges enough to be offered scholarships and grants.