Saving for college
Around 3 in 10 parents don’t yet have any college savings for their children, according to a recent Fidelity survey. Of the parents with savings, many parents haven’t accurately calculated what college will cost. Parents of preschoolers underestimated by around $110,000 what college would cost during their children’s years of attendance. Even parents with kids in high school were around $70,000 short in their guesses regarding how much college would cost in a few years.
Parents can use college cost calculators to estimate how much they’ll need to save for their children and can open a 529 account through a financial advisor or brokerage firm to fund future educational expenditures. The sooner parents start saving, the greater the chance they’ll be able to spare their kids from student loans.