Mistakes To Avoid When Saving For College Tuition

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Welcoming a child into the family is undoubetdly one of the most exciting times in a parent's life. However, with a new baby to care for, they also take on tons of new financial responsibilities that do not necessarily have an end. From the moment a child is born, a common goal that parents are tasked with is saving enough money so that a college education can be paid for without difficulty. Unfortunately, though, not everyone knows the right way to go about doing so, and in the long run, it could cost them.

To prevent yourself from getting into a sticky situation, make an honest effort to avoid these mistakes:

Completely Dodging Risks:
If your child is still very young, then try to avoid thinking as if they will need the money tomorrow. Although setting up a checking and savings account for your child will help you set the money they need aside, these are low-return approaches that may not get you the most bang for your buck. But if you are concerned about taking too much of a risk with your investments, even if you have a chance of getting more than you put in in the long run, see a financial planner to ask about what other savings opportunities are available for your family.

Starting and Stopping:
Not everyone will be able to tuck away the same amount of money every month, but if you experience a financial hardship, that doesn't mean that saving should be put on the back burner all together. Even if there comes a point where you can only save a little bit, keep going instead of stopping and starting up again when you feel you're in better shape - every little bit counts!

Not Having a Plan:
Most importantly, you need to have a plan in place to know exactly what is required of you in order to watch your money grow. For some, that plan may include something known as a 529 college savings plan, which is a state plan that is specifically dedicated to college savings - that means the money you put aside in this account is for tuition costs only. If you're not sure how to go about saving, don't just guess, meet with an expert to help instead.

For over 30 years, the American Investment Planners LLC team has been working with families all throughout the country to plan for life's greatest events and milestones, including the birth of a new child that requires college savings. To learn more about the financial planning services we can offer to you and your family, please visit us on our website or give us a call at (516) 932-5130.