Paying for College
The biggest problem for parents nowadays is paying for the education of their children. The question is – how much to save? Let’s see the numbers and compare the statistics of 1979 and the year of 2001. Each year the tuition increases by at least 8 %. So the cost for education will be 4 times bigger when your kids will be grown-up. So the price might get to the $300,000 point. So what to do? How to act?
If you would use these rules the full amount would be saved. Use the rule of one-third. It states: count the expected sum and save the one-third part; during the years of studying pay as well one-third; and the last, but not the least thing is – borrow one-third (here different loans would help you). So you would have three kinds of income – from past present and future.
The rule of thumb is also very useful: from the day your kid was born save one-tenth of your paycheck. Save at least one-tenth of the sum to pay the studying. At least 50 dollars a week should be saved since the day of your child’s birth.
Follow these rules and your kid would have a good college fund!