Paying for Your Children's Education Expenses
Today, many parents and students borrow money to cover at least part of the cost of college education expenses. In fact, in 2011 The New York Times says student loan debt in the United States will grow to more than $1 trillion, more than Americans owe on their credit cards.
According to FinAid.org, more than 66% of students attending four-year colleges borrow to cover the cost and have a cumulative debt averaging nearly $23,000.
While the money you set aside to educate your children probably won't pay the entire cost, it can cover a significant portion of those expenses, thereby reducing your need to borrow.
For guidance on how much money you need to set aside to educate your children you can speak with a First Investors Financial Services Representative. He or she can also advise you on tax-advantaged ways to invest that money, including an Education Savings Account and 529 College Savings Plan. Your representative can also recommend specific mutual funds and other investment vehicles that will help you reach your education savings goals.
