College Increases Earning Potential

Many of the benefits of education and a lifelong pursuit of learning are intangible, but an education can also pay big dividends in terms of future earning power. Earning potential increases with each degree a student receives, according to the U.S. Census Bureau.

So, if you're helping to send your child to college, it's possible that your contribution will make a significant impact on the child's quality of life in the future.

Future tuition bills can be overwhelming

While an education can positively impact your child's future, helping to fund that education can cost tens of thousands of dollars. If college costs continue to rise over the years, the total cost of a four-year education could easily reach six figures. And that doesn't count incidentals like books, parking or lab fees.

With only so much financial aid to go around, most colleges expect parents and students to contribute their share. Typical financial aid packages also rely on loans and payment plans, which can then be supplemented by a range of other funding options such as:

• Hope Scholarship Credit
• Lifetime Learning Credit
• Grants
• Federal loans
• Coverdell ESA
• Private scholarships
• Unsecured private loans
• Home-equity loans and lines of credit
• Work-study programs
• 529 plans

Start investing early

If you begin to save money at the birth of your child even a very small sum each month you can accumulate a considerable amount over time.