Saving for Your Childs Education

Beating the tuition bill

By Leigh Sanders

There are several options available to anyone who wants to save up money for their children’s educations. One of the best ways to accomplish this is to start saving in advance.

Is your child born yet? Do you just plan to have kids in the future? Either way, find out how much you want to have saved by the time your child(ren) are ready to enter college. Then, find an account or a CD with the highest payout possible per anum. And finally, based on the amount per anum that you would be making with this account/CD, break down the total into monthly payments. This is how much you should contribute regularly to the account.

By the time your child is ready to enter their college careers, they will have a great deal of funding available to them.

Your Choices

There are several accounts that would be ideal for a long-term investment such as this. One example would be www.ing.com. These savings accounts are connected directly to your checking account, so you can automatically transfer funds into the account each month, if you wish. They also have the highest annual payout of all savings accounts that I have seen (4.5%, which is distributed each month, so your account quickly snowballs!).

To find out how much you should contribute each month based on the amount of time that you have, the amount of time that you want to have at the end of that time, and the percentage of interest made each anum, use this basic formula:
A=amount of total funds to provide child with
T=time to reach total amount
I=Interest per anum
A x T / I = Monthly payment

If you are able to put more in each month, you will have that much more at the end of the time period, and your child will thank you that much more!