Tips to help parents and kids with their financial journey
Parents want the best for their children. They take the time to make sure that one day, their child will be able to get a college education. But people are never sure how to start saving for their child’s education. Gregg Murset, father of 6, Certified Financial Planner and CEO of BusyKid, has a few tips as to how parents and even kids can begin to save for college.
With the cost of a college education growing by leaps and bounds each year, parents must start a college fund as soon as the baby comes home. Do some research on banks or credit unions that provide special accounts or higher interest for college funds.
Let Others Pitch In
Usually there are 19 years of birthdays and holidays were other family or friends provide gifts to your child. When your asked what would be the perfect gift, don’t be afraid to say money for college. Add these funds to the already established accounts since every little bit will help.
Stay Away From College Loans
Of course it looks like an easy way to cover the costs … that’s what the lenders want it to look like. The next thing you know, your child (or in some cases you) is thousands of dollars in debt with years of payments ahead of them.
Make Your Kids Help Out
There is nothing wrong with your child getting a job and putting money towards some of the college expenses. Doing jobs around the house when he/she is young, is a great way to learn the meaning of work ethic, responsibility and accountability. It can also set the stage for what he/she will experience as adults and provide lessons in budgeting.
Match Their Success
As kids begin saving or sharing money as part of the budget they created, parents and grandparents should consider matching the deposit or donation as extra incentive. Not only will it provide additional motivation, but it will also increase the level of communication between parents or grandparents with the child. Many banks have begun matching programs for kids in order to motivate them to save more and increase interaction with the organization.
Pay for Grades
The higher the cost of college, the higher the premium on getting a scholarship based on good grades. At some state schools, receiving a scholarship for very good grades could mean a free ride. So parents, pay your child for good grades and think of it as a long-term investment that could save you thousands later.
Formerly known as My Job Chart, BusyKid.com is the first mobile-website that helps parents teach children about work ethic, responsibility, accountability and managing real money. Even though the website lets kids learn real life lessons surrounding earning and spending money, it also encourages strong character traits, good behavior and supporting charitable organizations.
*This is a guest post. For more information visit: http://www.busykid.com.