Q: Dear Valorie,
I am a single mother with a 12 year old son in the 7th grade. I am worried that I won't have enough money saved for his college education. How do I determine how much to put away each month to help pay for his tuition?
A:
By educating yourself about the options, you can stop worrying and start planning – now. Then begin taking action immediately to put money away. It’s not too late to start saving, but you cannot afford to wait any longer. The first step is to estimate the cost of his education. In the last few years, the average expenses were $21,000 per year at private colleges and about $10,000 per year at public colleges. Expect costs to rise by 7% per year to predict expenses by the time your son heads off to college. With only five years to go, you would need an extremely aggressive investment plan (putting away over $1,000 per month to meet the cost of a public college) to have enough money saved when he begins. Don’t be discouraged. You may not need to pay for his expenses entirely. Take some time to research your options – including scholarships, grants, your state’s college savings plan, Education IRAs and loans. The sooner you start, the better. I recommend researching the intenet, visiting your local bookstore or library, and talking to a financial planner or college counselor for more ideas on how to pay for his education. Also, be candid with your son about the importance of him maintaining excellent grades so that he can broaden his chances of getting into the school of his choice and improve his chances of landing scholarships. If you have younger children as well, now is the best time to begin planning for them, too!
Life coach and professional speaker Valorie Burton is the author of several books, including What's Really Holding You Back? and Listen to Your Life. Subscribe to her FREE e-newsletter at www.valorieburton.com.
