Saving for College

NPR is providing me with ample material this week with its current series on young people and financial literacy. On today’s Morning Edition, they discussed how difficult it is to pay for college, particularly since the 2008 economic downturn. Students are dropping out because neither they nor their parents can fund their college education. Counselors are seeing more students who are unusually stressed by their financial situation and who are worried that they may not be able to finish their education.

Yesterday I mentioned that my book, Toward College Success: Is Your Teenager Ready, Willing, and Able?, has an entire chapter devoted to finances. This NPR series supports my book’s point that teenagers and their parents should start saving for college as early as possible with whatever amount they can afford. If you and your student are expecting college in his or her future, it is never too early to start planning. Make a list of what part of college expenses you will fund and what part your student will fund. Encourage your teenager to start saving toward college—a little pocket money means a lot to a college student. You and your teenager should start educating yourself now on scholarships, grants, and loans. The earlier you learn about the options, the more prepared and the more successful your student’s college experience will be.

Any ideas you have on financial planning for college would help parents. Share your ideas here.