Meriwest Credit Union has Saving Tips for Your Child's College Education
08/29/05
For Immediate Release
Contact:
Sandra Citrigno
Corporate Communications Specialist
Meriwest Credit Union
Direct Line: (408) 365-6383/Cell Phone: (408) 887-3833
Meriwest Credit Union has Saving Tips for Your Child's College Education
SAN JOSE, Calif., August 15, 2005 - Someday your children are not going to be children anymore. Before you know it, your children will mature into young adults graduating from high school and ready for their next step in life - a college education, but are you financially ready for it? Have you saved for their college education yet? What should you do financially to plan for this life changing event? For starters - here are some tips Meriwest Credit Union's San Mateo Financial Center Manager, Hatim Abdul Al-Bari has for the community:
Set a Goal - The first step in the planning process is to determine how much money your children will need for their college expenses. Most students go straight from high school to college, so subtract your child?s age from 18 and you have how many years you will have to save. The best way to start saving is right when they are born that way you have more years to save and in the end have a good amount accumulated. Also, figure out an estimated funding goal and develop a plan to help you reach it.
Tuition and Expenses in Today's Dollars - If you?re confident that your child is headed for college, then use the current average costs for a state school and calculate accordingly.
Figure out the years of college that will be spent - Do you want to cover the expenses for an associate's degree (two years), bachelor's degree (four years), Each month make sure you allocate enough money for college funds.
Know what college saving options are available to you. Understand what they are, how they work, and the advantages and disadvantages of each. Look into different account options to save for your child's education The following are such accounts to review - the Coverdell Education Savings Accounts, Seciton 529 plans, Custodial Accounts, and other investment options including savings accounts, mutual funds, CDs, stocks and bonds, etc.
Monthly Amount You Can Save - Save about $100 a month by the end of the year you will have $1200 in savings and if you do that for at least four years you will have almost $5,000 in the savings and that does not include accrued interest. Also, try to increase the amount you save each month for their college education so that you will have more money for the four years they will be attending.
When your children receive birthday money gifts have them save it in their savings accounts or if they don't have an account yet have them go to the bank with you to open one. The children will get to see how an account is generated and what they need to do to maintain a savings account.
Get facts on financial aid and see how that may help your child's financial future
About Meriwest:
Meriwest Credit Union is one of Silicon Valley's largest and established financial institutions providing proactive, personal, convenient and innovative financial services to businesses and families throughout the San Francisco Bay Area and Tucson, Arizona. For more information about, please visit us at www.meriwest.com.
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