Consumer Report: Tips for saving for college education

Tips for saving for a college education

Tips for saving for a college education (9/30/16)

EDISON - The cost of a college education keeps rising, with the average cost of higher education now $31,000 a year in tuition and fees. 

A study by the financial services company Fidelity finds that parents who want to help their children with college expenses are having a hard time keeping up with the costs.

Consumer Reports’ Donna Rosato says that paying for a college education may seem overwhelming, but parents should remember that every little bits helps.

“One good thing to do is probably to automate your savings,” Rosato says. “Have $50 a month taken out of your account. Even several hundred dollars can pay for books at the beginning of a semester.”

Rosato also suggests applying for scholarships and grants. She also suggests parents be honest with their children about how much they can pay so the child can pick a school that is a financial fit.

Consumer Reports also suggests that students try going to a county college for the first two years if they are undecided on a major. The costs are often less.

Another suggestion is to consider a tax-free 529 college savings plan to make the most out of college savings.

“A lot of parents wonder ‘Should I put my money in a 529 plan or should I invest it myself?’ It’s very hard for people to beat the market on their own. And it's very hard to beat the tax advantages you get with a 529 plan,” Rosatos says.

advertisement | advertise on News 12

Trending Video

From left to right: New Jersey State Trooper 1 New Jersey state troopers help deliver baby on I-287
The Pascack Valley High School girls lacrosse team 2 HS lacrosse team 'adopts' 8-year-old fighting brain cancer
An Amtrak power problem in one of the 3 More headaches for LIRR riders after Amtrak power problem
Sea Cliff's Troy Ramey was voted off 'The 4 Elisa's Entertainment for 4/26
5 VIDEO: Brooklyn Botanic Garden to host annual Sakura Matsuri Festival

advertisement | advertise on News 12


It's good to know you have Walt Kane Kane in Your Corner

It's good to know you have Walt Kane in your corner.

News 12 takes a look at the hottest Tech Check

Eric Landskroner has a look at the latest gadgets and biggest stories in tech.

News 12 On the Scene

Check out these exclusive videos from New Jersey celebs!

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.