While American families have more money saved for college than they did last year, it’s still not nearly enough — and they’re saving incorrectly, advisers say.
Only half of all families with children under 18 save any money for college (down from 62% in 2009), but among that group, total college savings are up a whopping 30% from last year to $15,346, according to Sallie Mae’s “How America Saves for College 2014” study released Thursday.
The college savings levels of both high- and middle-income families have increased dramatically: High-income families, unsurprisingly, have the highest level of college savings at an average of $27,446, which is up 39% from last year; and middle income families have saved an average of $12,241, up 29% from last year.
But low-income families, who have saved an average of just $3,792, down 26% from last year, are struggling with college savings.
The best advise for parents that desire for their children to attend college is to start preparation earlier rather than later because there are other expenses like clothing, insurance, travel, school supplies and other miscellaneous items.
There is never a convenient time to start preparing for college so start TODAY (if you haven't already).
Depending on the age of your child, what you can afford and the cost of college this is an example of how you can start.
Age: 0-5 $25 per month
Age: 6-10 $35 per month
Age: 11-13 $50 per month
Age: 14-15 $75 per month
Age: 16- $100 per month
Sign Up TODAY to get STARTED
Double or Triple the amount based on your income if you can. This way you get paid the interest rather than the banks getting the interest when you are forced to take out loans.