Planning for College
When you bring your little bundle of joy home from the hospital you may be trying to figure out the costs of diapering him or her for the next two years not how you will pay for their college tuition. Given the rising costs of tuition though lately, it is not a bad idea to start thinking about it early- like in utero. Just remember it's never too late to start planning.
Start on the Right Foot
A savings account offers a child the unique opportunity of becoming financially literate by putting money into the credit union and watching it grow. Our CU Discover and CU Succeed programs offer a safe and secure financial learning environment for your kids. While a savings account is a great start, some people may prefer to find a higher yielding option.
Investigate your options at the Credit Union
While savings accounts are great for some people, others prefer to gain a higher return on money put in the credit union and Money Market Accounts, CD's and IRA's are just the way to do that. These accounts enjoy typically higher yields than the average savings account and may allow for direct deposits via payroll deduction.
Get help
There are hundreds of college savings plans out there to choose from. It can be a bit overwhelming to see all of the options and not know where to begin. It is important to talk to a financial advisor and weigh your investment choices. DUFCU has a unique relationship with AIG VALIC allowing our members access to a trusted source in college planning. You can also surf the internet and read up on some plans for yourself before seeking advice. AIG VALIC has a great college planning section of their website simply click on "new child" and scroll through the ideas. Other great sources of college planning tips are Sallie Mae's College Answer and College Savings Plan Network. Read articles about financial aid in our Online Financial Center.
Find a School
As Junior begins making his/her way through high school you should start to ask the question- where will he/she go? Visit college campuses. Take tours. Spend time with the students. Find out what they like about the school and ask what they don't like. Have Junior weigh the options and decide what is important to him/her in a college. Is it the top rated engineering school or the menu choices in the cafeteria? Once you have that list, narrow down to a list of schools they want to apply to. Need a jump start? Use this really cool college matchmaker quiz on the College Board.com.
You're In!
Congratulations on the acceptance!! While this is sure to be an exciting time for you and your child, you may also be concerned with paying for the tuition or simply filling the gap between what you saved and what you owe. If it happens that you just weren't able to come up with the full tuition payment or you need a little boost to cover living expenses, personal loans can always be used to help ease the burden. Home equity loans are also a choice to finance college. You can find information on paying for college at the North Carolina State Education Assistance Authority. A great source for information on Financial Aid is FAFSA.
Pack em up, Move em out!
Once you have squared away the financial details, it is time to sit back and relax and enjoy the idea that your child will soon be off to college and you can finally turn their bedroom into the sewing room/execise room/ guest room you have been dreaming of. But don't send them off unprepared. Print off this handy checklist of everything they need to pack before they go. And don't forget to make sure their Credit Union accounts are in order.
