There is no better investment you can make than an investment in education, specifically a college degree. Going to college can open doors you never imagined and create a world of opportunity. And the key to being able to afford to go to college is making sure start saving early and regularly.
The Rising Cost of Education
Over the last decade the cost of college tuition and fees at a four-year public college or university (adjusting for inflation) has increased over 50%, and experts predict that college costs will only continue to rise over the next decade. Saving now, even a little bit, and allowing your money to grow, will help you be financially prepared when you, your children or your grand children are ready for college.
Most people don’t realize that putting away just a few dollars a month (the cost of going to a fast-food restaurant just once) into a college saving plan over ten years can yield enough to pay for a college education.
Education Is Worth The Cost
According to the U.S. Census Bureau, professionals who earn a college degree earn an average of $1 million more during their careers than high school graduates.
- Earnings of 4-year college graduate MEN were 60% higher than median earnings of high school graduates in 2009.
- Earnings of 4-year college graduate WOMEN were 70% percent higher than median earnings of high school graduates in 2009.
A Little Saving Can Go A Long Way
- Setting aside just a small amount on a regular basis is the key to saving for college.
- If you begin saving $50 a month in an account that earns 7% interest per year, you’ll have nearly $22,000 in just 18 years.
- Is a college education worth what you’re currently paying monthly for your cable TV service?
Reducing Your Student Debt
The large majority of students in the United States rely on loans and other forms of debt to financial their college educations. Even though most student loans have very low interest rates, over a long period of time even small interest payments add up to a considerable amount of money. By saving for college early, you’ll be able to dramatically reduce your reliance on debt, eliminate costly interest payments down the road, and even reduce the cost of your college education by allowing interest to work for you, not against you.