Options: Saving For College

By The FoolProof Team

As a student, why save for college or other career education? Particularly, if your parents already have a college savings plan? Having your own savings plan makes sense for several reasons.

  • Higher education costs are high and rising. Beyond tuition costs, college or technical training requires books and educational materials, various fees, living expenses, transportation and so forth. Even if your parents have a great college savings plan or you are a prime scholarship candidate, having extra cash resources may, for example, enable you to afford a college with higher tuition, borrow less in student loans, work less in work-study or part-time jobs, or take advantage of special educational opportunities.
  • Learning budgeting and saving early are good skills for independent college life. Lots of college students get into financial hot water because they don't know much about managing their finances. Students who start learning in elementary, middle or high school how to save, budget and manage their finances to accomplish their goals have a head start on success.
  • Saving for college gives you "ownership" of your higher education plans. Students of human psychology have long observed that we tend to take more seriously those endeavors we have a tangible investment in—of time, energy, and money.

College Savings Options

At the very least, you may wish to set up a dedicated savings account or money market account for your college savings and make a specific plan to contribute a certain portion of your income and earnings to it. However, students may also set up or participate in some of the special education savings plans discussed on this credit union website.

Done? Go to Types of Financial Aid.