Saving for college; saving for university

Do you have a college fund?

If you are a family with young children or teenagers saving for university or college is something that you must consider?

Why should you be concerned with paying for university or paying for college education?

Well it has been shown that a university or college degree increases the amount of money you can earn during a life time four times. Let look at some statistics.

Over a lifetime

  • Non high school graduate – $1,051,080
  • High school graduate – $1,429,000
  • Some college education – $1,675,880
  • College graduate with bachelors degree – $2,288,800
  • Professional degree $4,000,000

In short if you go to college or university and earn a degree you are likely to earn almost three times as much as high school graduate. This is why a college fund me be important. However for a different understanding of these stats see the last vedio at 37 mins.

So we really owe it to our children to make sure they get a university of college education.

This will give them a greater chance of making it in life. The will also give them the basis of starting and providing for their own families. As money is one of the sticking points that cause family problems, this will help them to avoid the huge cost of divorce and the pain of broken families.

So the million dollar question is how on earth do you help your children get an education when it is so expensive. For example students in the UK will be asked to pay up £9000 a year for their university education. See this BBC report http://www.bbc.co.uk/news/education-11677862

Martin Lewis of Money Saving Expert gives an understanding on how it works. http://www.moneysavingexpert.com/family/student-loans-tuition-fees-changes

In America the average cost of college/University is said to be $21,235 per year (2005/2006 figures).

Here are some ideas you may want to consider

  1. Start saving and investing for your children’s future education
  2. 2.       Consider going to a college or university that you can afford, not necessary the one that is the most elitist. Dave Ramsey says, “Go to where you can pay to go. Get the knowledge not the pedigree.”
  3. Consider sending your children to great universities in other countries like China, Africa, India and Caribbean. These places have solid education institutions and you will get far more for your money based on the exchange rates.
  4. As an extension to the above point some major universities have satellite campuses in other countries where they want to recruit students. Their tuition there is much cheaper than on the main campuses in UK or America. You will still get the same degree as if you attended the main campus.

For an alternative view on the university education check out this documentary

http://www.youtube.com/watch?v=VpZtX32sKVE

 

Filed under: Family finance

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