Parents and their children ponder the same question throughout most of the world: what to do after high school graduation. The choice is now between finding a job or getting more qualified through college. To lead a life of quality and comfort having a college education degree is pretty essential.
The trend these days is to look for avenues of higher education after completion of schooling in most of the places in the US. Consequently even the jobs, which had been getting filled up by those who have completed only high school education, are now asking for college graduation.
The earnings of those with a bachelor degree are approximately 70% higher than the earnings of anyone with just a high school education. Those qualified with two year diplomas even get much more than high school qualifiers. Considering the difference in the earning potential the time spend for college studies is a small investment.
The point here is whether you have the financial capacity to afford the expensive college education for your ward. Nevertheless, you can also not risk to deprive them of it. Ideally, an education fund should be started before your children are even born. Let us now see how much money would we require for this.
You would be spending less if you send your child to a college in your own state. Non residents are required to pay higher tuition amounts than state residents, if they attend a public school. However, private universities mostly have the same fee structure for both residents and non residents.
The amount required for college education would include cost on educational fees, living expenses including lodging, and other expenses. This usually would cross about twenty thousand dollars for most universities. However you will have to shell out at least five thousand dollars more for sending your child to other states and double of that to the private schools. Scholarships will help with some, but not all of that bill.
The expenses on stay and food consumes a large portion of this amount. So, if the student can eat and live at home that would be a huge savings. Next comes the money required for tuition and other fees, which is continuously increasing over the years. The remaining amount includes the money spent on transportation, books and other items. You will have to find ways to reduce this by using public transport, taking advantage of discounts and sales and using second-hand books.
These costs are different depending on where you live and what type of lifestyle the student makes his own. You will have to add the transportation expenditure to the budget if the child has to travel far to the school. With the price of gas continuing to increase, this expense could be astronomical. Clothing, food and entertainment expenses must be kept into account, along with, depending on the school, a computer.
These are the usual anticipated expenses for completing a four-year degree course, but you can find technical schools and community colleges where expenses are lesser. Some students may even find them more appealing.
It's hard to estimate how much college will cost several years down the road, but you should estimate an increase of about 10% a year. Do your research. So if setting up a trust for college is not an option, consider a simple savings account. Better yet, check out the local 529 plan in your state which can also save you money on taxes. It is assured that your investment on studies will pay you back in a great way.
The trend these days is to look for avenues of higher education after completion of schooling in most of the places in the US. Consequently even the jobs, which had been getting filled up by those who have completed only high school education, are now asking for college graduation.
The earnings of those with a bachelor degree are approximately 70% higher than the earnings of anyone with just a high school education. Those qualified with two year diplomas even get much more than high school qualifiers. Considering the difference in the earning potential the time spend for college studies is a small investment.
The point here is whether you have the financial capacity to afford the expensive college education for your ward. Nevertheless, you can also not risk to deprive them of it. Ideally, an education fund should be started before your children are even born. Let us now see how much money would we require for this.
You would be spending less if you send your child to a college in your own state. Non residents are required to pay higher tuition amounts than state residents, if they attend a public school. However, private universities mostly have the same fee structure for both residents and non residents.
The amount required for college education would include cost on educational fees, living expenses including lodging, and other expenses. This usually would cross about twenty thousand dollars for most universities. However you will have to shell out at least five thousand dollars more for sending your child to other states and double of that to the private schools. Scholarships will help with some, but not all of that bill.
The expenses on stay and food consumes a large portion of this amount. So, if the student can eat and live at home that would be a huge savings. Next comes the money required for tuition and other fees, which is continuously increasing over the years. The remaining amount includes the money spent on transportation, books and other items. You will have to find ways to reduce this by using public transport, taking advantage of discounts and sales and using second-hand books.
These costs are different depending on where you live and what type of lifestyle the student makes his own. You will have to add the transportation expenditure to the budget if the child has to travel far to the school. With the price of gas continuing to increase, this expense could be astronomical. Clothing, food and entertainment expenses must be kept into account, along with, depending on the school, a computer.
These are the usual anticipated expenses for completing a four-year degree course, but you can find technical schools and community colleges where expenses are lesser. Some students may even find them more appealing.
It's hard to estimate how much college will cost several years down the road, but you should estimate an increase of about 10% a year. Do your research. So if setting up a trust for college is not an option, consider a simple savings account. Better yet, check out the local 529 plan in your state which can also save you money on taxes. It is assured that your investment on studies will pay you back in a great way.
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