Saving For College: Practical Ways To Save Up For Your Child's College Education

All parents hope to give the best education for their children. Many do allot a portion of their earnings to the college education of their children while others just have enough to make ends meet. But whether you could or could not, should you save for your child's college degree?

Students Who Do Better In School

There are studies which suggest that those who pay for their own college education do better in school. Janet Berry-Johnson shared via Forbes how she and her husband worked their way through college because their parents either did not help them pay for it or had financial challenges. She also cited a college boyfriend whose parents shouldered his education to help him focus on his studies; however, he ended up going to nightclubs instead of concentrating on his education.

It may still entail lots of arguments on whether the claim is true or not when it comes to school performance. Savingforcollege.com's 2016 Annual College Savings Survey showed that 49 parents who want to pay for their kids' college education. If you're one of them, there are ways that you can do without taking drastic measures like spending your retirement savings.

Ways To Save Up

One way is through properly investing such as contributing to 529 plans, Forbes said. As many as 72 percent still don't know this 529 college savings plan though, according to a survey by Edward Jones, a financial services firm. It is an investment plan that provides practical ways to pay for your child's tuition fees in the future.

You can also use your Roth IRA account to save for college at the same time that you are saving for your retirement, Los Angeles Times suggested. The publication noted that doing this strategy provides you with flexibility in terms of how your money is used. You can also tap into your home equity by using a "cash-out" refinance and consolidating student loans with high interests into that with lower interest rates.