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. If one is planning to have a decent and comfortable life, higher education is pretty much a requirement.
Unlike previous decades, more than half of recent graduates in the United States engage in some type of schooling after high school. 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 difference in the earnings between a college educated person and a high school education is about 70% more. Even those with a two-year associate degree earn considerably more. Those years are a small investment compared to a child's life time earning potential.
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. Lets take a look at how much money we're talking about.
It's cheaper to go to a college or university in the state where you live. 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 estimated cost for each year of college is based on tuition, room and board, books, supplies and living 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.
A large portion of that amount is for room and board. Staying at your own home and doing higher studies would save you a good amount. 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. There are ways to save on those with sales, used books and public transportation.
The costs also depend to a considerable extend on the lifestyle of the student and the locality where he or she stays. You will have to add the transportation expenditure to the budget if the child has to travel far to the school. With increasing gas prices, this expenditure can also become huge. You may also have to cater for a computer, depending on the course, along with other expenses for food, entertainment and clothing.
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. There are students who would prefer this sort of studies.
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. Undertake some research yourself. If you find that setting up a fund for future education of your child is not possible, then opt for a savings account. You may also have a look at the local 529 plan and consider whether it can help you to avail some tax savings. You can count on a good return on your college investment.
Unlike previous decades, more than half of recent graduates in the United States engage in some type of schooling after high school. 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 difference in the earnings between a college educated person and a high school education is about 70% more. Even those with a two-year associate degree earn considerably more. Those years are a small investment compared to a child's life time earning potential.
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. Lets take a look at how much money we're talking about.
It's cheaper to go to a college or university in the state where you live. 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 estimated cost for each year of college is based on tuition, room and board, books, supplies and living 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.
A large portion of that amount is for room and board. Staying at your own home and doing higher studies would save you a good amount. 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. There are ways to save on those with sales, used books and public transportation.
The costs also depend to a considerable extend on the lifestyle of the student and the locality where he or she stays. You will have to add the transportation expenditure to the budget if the child has to travel far to the school. With increasing gas prices, this expenditure can also become huge. You may also have to cater for a computer, depending on the course, along with other expenses for food, entertainment and clothing.
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. There are students who would prefer this sort of studies.
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. Undertake some research yourself. If you find that setting up a fund for future education of your child is not possible, then opt for a savings account. You may also have a look at the local 529 plan and consider whether it can help you to avail some tax savings. You can count on a good return on your college investment.
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