Football games. Tailgates. Dorm rooms. “Go green, go white!” Study sessions. Study abroad. Spring break. Living with my best friends. Being young, perhaps a little wild, and yes, free.
College. A flood of memories comes to mind when I think about those years. However, what’s noticeably absent from my memories are two words that are a big deal: student debt.
You see, I had the great fortune of my parents planning and saving for my undergraduate college years for my entire life, so that when it came time to go, I didn’t need to worry about how it pay for expensive things like tuition, books and rent.
My college experience was, truly, one of the greatest gifts they’ve given me. (Er..besides that whole life thing. And about a billion others. Love you, Mom and Dad!)
Importance of Saving For Your Child’s College Education
It wasn’t until I started to pay off my own graduate student loans (my parents had undergrad covered, but graduate school was up to me), and having kids of my own, that I grasped the gravity of their gift. How expensive it all is. How long it takes to save in general. How tough it is to pay off student loan debt.
When it comes to saving, the amount of dedication it takes toward financial diligence can’t be overstated; it seems simple but in reality it can be very hard. I’m so grateful to have had parents who planned the way they did; I know how hard they worked to make college happen for my brother and I. In general, I realize how fortunate I am to have even had the opportunity to go to college.
Doug and I have had a lot of conversations and strategy sessions about how we’re planning for our kid’s future – It’s a goal of ours to be able to pay for our kid’s college, similar to the gifts that were given to us. In our minds, they’re going, and we’re going to do all we can to help get them there. But, as I know so many can relate to, we’re not rolling in the Benjamins; the reality for us is that it’s going to take time to save for our kid’s to have the opportunities we did. 
How To Save For Your Kid’s College Education:
The first step we took was to start a 529 account for each kid. A 529 college savings plan is essentially a state-sponsored plan great for college saving, as it has state tax benefits. Qualified expenses include tuition, books, fees, supplies, equipment, and reasonable room and board.
From the day that both Grace and Josephine were born, we have been putting money into their college accounts. (This may seem overkill, but I know that high school and then college will be here before we can *blink!*)
I talked a little about this topic here, but auto-saving from our paychecks is the best tip I have toward saving for anything, especially something that builds over time and requires regular contributions. Every month, we have a set amount that goes into our kid’s 529 accounts that is auto-deducted from our paychecks. It’s not a lot, but hey, it’s something. Auto-deduction is truly amazing because you kind of forget about it, and all of a sudden when you look at the account it’s like, “Oh heeeey!” It adds up quickly.
Another thing that’s been really helpful is having the grandparents, family members and close friends contribute where they feel comfortable, particularly for big life events. For example, at Grace and Josephine’s baptisms they both received money that went straight into their college accounts. I love this because, let’s be honest, they’ll never remember that random toy that someone bought them. But contributing toward their college is something that’s priceless.
How Much Do You Need to Save?
Once we had a game plan in place for saving, the biggest question we (continually!) ask ourselves is how much?!
Here are some facts. In 2013-2014, the average annual cost of tuition, room and board was $18,391 for a 4-year public in-state university, and 40,917 for a 4-year private university. That’s $73,564 and $163,668 respectively for all four years, and those numbers aren’t taking yearly cost increases into account.
I was curious as to what Doug and I were facing for Josephine and Grace’s accounts, and according to this college savings calculator, we’re looking at around $150,000 for the girls, and that’s at an in-state public university. Oh. My. Lord.
It’s daunting, isn’t it? I mean truly, I find it actually crazy how much a college education costs, to the point where it makes me almost angry. Problems with the system aside, we’re facing reality and starting now. Because in this case, every bit counts!
Saving for college with COUNTRY Financial
If you don’t know where to start, a great place to go is COUNTRY Financial. They’re all about taking simple steps toward financial goals – I love how they break down everything in an easy to understand manner. Because, let’s face it, all the rules of this whole financial world are a bit over some of our heads. (Ah-hem. Me.) They of course have 529 plans available, but they also have a ton of information on other education funding options, too.
