Money Matters – Step 6: College Funding

What’s the best way to send your children to college? Pay cash, of course!

How to Save for Your Kids' College Fund | Fifth Third Bank

Far too many young adults are saddled with school loans that will keep them in debt for many years to come. DO NOT SIGN UP FOR STUDENT LOANS!

Dave recommends funding college, or at least the first steps of college, with an Educational Savings Account (ESA), funded in a growth-stock mutual fund, because this grows tax-free. Investing $2000 per year from birth to age 18, invested in mutual funds that average 12% per year will provide $126,000 for college expenses.

What if you are short on time or funds? Time to get creative!

  • Apply for government grants and scholarships. There are many of these that go unfulfilled simply because no one applies.
  • Attend a junior college for 2 years then transfer to a university
  • Live on campus or at your parents house
  • Eat the cafeteria food or eat at your parents house
  • Don’t fret if you can’t get a degree with a “pedigree”; for the most part, it’s just a piece of paper.
  • Work a regular job while you go to school
  • Find a company that has a work-study program
  • Military service (full-time or part-time) can help provide for tuition & books. Make certain their offer is in writing before you sign up for military service

Now let’s work on something big – Step 7: Pay Off Your Home Mortgage.

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