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Saving for your children’s education is an important way to give them a good start in life. It can help them feel more confident and reduce the chances that they’ll have a lot of school debt they have to get through as they’re just getting started out in life. But how should you save for that education? What are the best ways to be sure your children can attend school when they’re ready? Some states have more options than others, but there are always ways for people who want to save for their children’s education to do so. Before you pick an option, make sure you consider all of the reasonable choices you’re offered. That way you can be informed and pick the one that’s right for your needs.

Does Your State Have a Program?

Some states have college programs where you pay a small amount each month so your child can save up to have money to attend a state college. The earlier you start this kind of program the less expensive it is, and you can even start the program as soon as your child is born. That way you don’t have to worry about paying large amounts every month since you’ll have the program for a long period of time. That can be much easier on a growing family, especially if there are multiple children. Parents and grandparents can both generally start up accounts for these programs, but it’s limited to one account per child.

What About a Savings Account?

It’s possible to use a standard savings account for a college fund. That money will be separate from what’s in your checking account, so you’ll be less likely to spend it. The big downside with this kind of savings plan is that most savings accounts pay little to no interest, so your money isn’t going to grow rapidly. How much you put into the account over time is basically what you’ll have when your child goes to college. That could be enough, or it might fall short depending on how much you put in and whether college costs rise at a rate you plan for or a higher one. Nevertheless, this is one way of doing things.

Should You Pull From Your Retirement?

Some parents pull from their retirement fund to send their children to college, but keep in mind that it can take a long time to put that money back in. You’ll also be earning less interest on the fund during that time because of the lower amount of money in it. Parents who are still relatively young and have a number of years to work may choose to do this. It’s not necessarily the best strategy for people who are older and have multiple children who will be attending college or don’t have a lot saved for retirement already. Only if there’s a true surplus should this be considered and that’s often not the case for most people.

What Other Choices Do You Have?

There are mutual funds, stocks, bonds, and other investment vehicles you can get involved with, all of which could be used to pay for your child’s education. Even real estate investing could work. Just make sure of two things. First, that you can get the money back out when you need it. Second, that you won’t be paying big penalties or taking big losses to get that money out. Both of those can put a serious damper on sending your children to college and you want to ensure you’re as prepared as possible.