FINANCIAL FOCUS: 5 college-funding errors to avoid

Joe Faulk

Joe Faulk

Published: Tuesday, August 12, 2014 at 05:30 PM.

It’s just about back-to-school time again. If you have young children, you might be hustling them to the store for backpacks and binders.

But if you fast-forward a few years, you can envision driving your kids a little farther — to their college dorms. And when that day comes, you’ll want to be financially prepared.

So avoid making costly mistakes when preparing for, and paying, those big bills.

Here are some common errors:

●Not saving enough. Only half of all families with children under 18 save any money for college, according to a recent study by Sallie Mae, the country’s largest originator of federally insured student loans.

You might find it easier to save for college if you automatically move a set amount each month from your checking or savings account to a college savings vehicle.

●Not considering vehicles with growth potential. The same Sallie Mae study found that more parents use a general savings account than any other method of saving for college. But since most savings accounts these days pay a minimal rate of return, you will have trouble getting the growth potential you need to achieve your college savings goals.

1 2 3

Reader comments posted to this article may be published in our print edition. All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.

▲ Return to Top

Local Faves

Tonight in Prime Time