Tips to Jump-Start Saving for Your Child's College Education

CHET, the Connecticut Higher Education Trust, shares tips for saving money for your child' college education, including determining the cost of college, setting savings goals, and opening a 529 College Savings Plan.

Many families find the mere thought of saving for higher education overwhelming. With a four-year, private college education already topping $150,000, the thought of paying for college can be daunting. But planning for college in advance can help families achieve their goals and getting started might be easier than they think, according to the experts at the Connecticut Higher Education Trust.

“Faced with the staggering costs of college, many people feel paralyzed and that prevents them from taking the first step,” says Treasurer Denise L. Nappier, who serves as Trustee for the Connecticut Higher Education Trust, the state’s direct-sold 529 college savings plan. “What’s important is that they start to save, even a little bit, as soon as possible. It’s never too early or too late to start and getting started is easier than most people think.”  

CHET offers the following tips to get on the right track:

Determine how much you need to save. According to the College Board's Trends in College Pricing 2012, the average cost of a four-year degree at a public college is approximately $17,860 per year. For a private college today, the cost is more than $39,518 per year. There are many tools available to help you calculate how much you need to save. Try this online calculator to create your own College Savings Planning Report.

Set a goal. Having a goal is important so that you can track your progress. The online calculator will help you determine how much to save based on your goals. Be realistic in how much you can commit to set aside every month. Look at your expenses and see where you might be able to make cuts—a dinner out, keeping the thermostat a few degrees lower, etc. And don’t be ashamed to start small—$25 to $50 a month over time will build a nice savings cushion for college.