Although you may not realize it, you could save a full year’s worth of college tuition, room & board and books when your kids start college. If your school has an advanced placement program, called “AP” classes in some schools, your child can gain credit for high school as well as for college. Just think of it, your child completes the AP classes, then at college takes the challenge test, which will cost about $100 per class, and when they pass the tests, they start their college career as sophomores, not freshmen.
Based upon 2005 costs, that can save you between $10,000 and $20,000 for the cost of your child’s education.
This type of advanced planning means that you can save for retirement as well as college for the kids. Putting a little money in each pot from the day you start your career will mean that both you and the kids can be comfortable knowing that the dollars will be there when needed. You won’t have to dip into your retirement funds to pay for at least one year of college for each of your kids.
So, what do you do now!!! Start your college fund at the same time you start your retirement fund. Start working with your kids so that they will be ready to jump into the AP classes when they get to high school. Planning ahead is your friend. Failing to plan ahead is your enemy.