Parents and their children ponder the same question throughout most of the world: what to do after high school graduation. Is it best to look for a job or to secure a higher education? 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. So jobs that use to only a high school education previously now are asking for an associate degree.
The difference in the earnings between a college educated person and a high school education is about 70% more. Those qualified with two year diplomas even get much more than high school qualifiers. 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. But then, how can you afford to not send them? If possible, you should start thinking of saving money for college education even before the birth of your. 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. In most of the states, the public schools, tend to charge higher fees from the non- resident students.. Most private universities charge the same for both in state and out of state students.
The amount required for college education would include cost on educational fees, living expenses including lodging, and other expenses. The estimated total in a public school is over twenty thousand dollars. Anyone wishing to estimate the costs for out of state students would need to add about three to five thousand more dollars to the total bill, and students wishing to go to a private school would need to double the amount. Scholarships will help with some, but not all of that bill.
The expenses on stay and food consumes a large portion of this amount. Staying at your own home and doing higher studies would save you a good amount. The next largest expense is for fees and tuition, something that is rising as fast as medical costs. 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. If the child attends a school which is really far from home, transportation expenses must be factored in. With the price of gas continuing to increase, this expense could be astronomical. You may also have to cater for a computer, depending on the course, along with other expenses for food, entertainment and clothing.
Most of these costs are examples of attending a four-year university but there are also community colleges and technical schools which are usually cheaper. Some students may even find them more appealing.
It is not easy to calculate the money needed for college expenditure far in the future, but the key to this is to add an increase of 10% per year. Undertake some research yourself. 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. You can count on a good return on your college investment.
The trend these days is to look for avenues of higher education after completion of schooling in most of the places in the US. So jobs that use to only a high school education previously now are asking for an associate degree.
The difference in the earnings between a college educated person and a high school education is about 70% more. Those qualified with two year diplomas even get much more than high school qualifiers. 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. But then, how can you afford to not send them? If possible, you should start thinking of saving money for college education even before the birth of your. 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. In most of the states, the public schools, tend to charge higher fees from the non- resident students.. Most private universities charge the same for both in state and out of state students.
The amount required for college education would include cost on educational fees, living expenses including lodging, and other expenses. The estimated total in a public school is over twenty thousand dollars. Anyone wishing to estimate the costs for out of state students would need to add about three to five thousand more dollars to the total bill, and students wishing to go to a private school would need to double the amount. Scholarships will help with some, but not all of that bill.
The expenses on stay and food consumes a large portion of this amount. Staying at your own home and doing higher studies would save you a good amount. The next largest expense is for fees and tuition, something that is rising as fast as medical costs. 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. If the child attends a school which is really far from home, transportation expenses must be factored in. With the price of gas continuing to increase, this expense could be astronomical. You may also have to cater for a computer, depending on the course, along with other expenses for food, entertainment and clothing.
Most of these costs are examples of attending a four-year university but there are also community colleges and technical schools which are usually cheaper. Some students may even find them more appealing.
It is not easy to calculate the money needed for college expenditure far in the future, but the key to this is to add an increase of 10% per year. Undertake some research yourself. 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. You can count on a good return on your college investment.
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