by Chauleaqua Washington
For New Pittsburgh Courier
Starting in high school there are always the worries about saving for college. Constantly asking when to save and how much to save. Saving for college is becoming a big deal now that college tuition has gone up.
“Students and parents alike spend their valuable time and hard-earned money to get into the right school and earn their college degree,” said Patricia Sadar, an adjunct professor at Florida International University.
When saving for college students should start as early as they can. Saving money at home isn’t going to cut it. Students should put their money in the bank and in a savings account. The account should differ from their checking account, this way the temptation to spend is less than normal, she said. When picking out a bank make sure that their interest rates are high, this way you can gain more money faster.
Most banks do not charge children a service charge. Some of these banks locally include PNC bank, Dollar Bank, Fifth Third Bank, First Commonwealth and more. After having a secure bank and putting money into a savings, the next most important thing to do is keep putting money into the account. The more money in the account the more interest you receive on it.
Savings should most likely be saved in the parents’ account; students’ assets are weighed more heavily when determining financial aid eligibility. With money in the bank and it receiving interest, knowing when and why to save can save time. Save when college tuition starts to increase and financial aid is available. The more you save the less you need to barrow.
Bonds are another great investment to make. Interest rates are higher on bonds, and they tend to save more than banks. Now that students have started saving for college the next step is to apply for scholarships and loans.
(Part two of this series will deal with scholarships and loans.)