Joseph Cianciotto: How to Save for Your Kid’s Education

Joseph Cianciotto on Saving Money for Your Child’s Future

Education is the most important gift we can give our children. And there’s no better education than a college degree. Joseph Cianciotto firmly believes a college education provides a strong foundation for any career. It prepares students with essential skills like critical thinking, communication, and problem-solving. Even in an ever-changing workforce, a college degree signals to employers that their potential employee has the right stuff to succeed. College costs are increasing, but this shouldn’t deter parents from factoring it into their financial planning. With all the benefits a college degree provides, it’s a gift that will continue to give for a lifetime.

Budget for your savings.

Start with a savings account or money market account that will give you some interest on your money. The interest rates for most savings accounts are not that high, but it’s a great place to start until you decide what other strategies you might want to try. Many banks offer automatic transfers that move money from your checking to your savings account, adds Joseph Cianciotto.

Apply the “2K rule.”

The 2K rule was designed by Fidelity Investments as a guide for college financial planning. The rule suggests multiplying your child’s age by $2,000 to develop your college savings target. For example, if your child is five, your college savings should be $10,000; if they are 15, you must save $30,000. By the time your child reaches 18, your $36,000 college fund can help cut college costs significantly, and you can make up the difference with student loans or scholarships, says Joseph Cianciotto.

Have your kids save for their future education.

Explain the importance of saving to your children and encourage them to create their college fund. It will not only give them a sense of responsibility in the process, but it will also help them grasp the value of a college education. In addition, consider matching their fund with your contributions to encourage them to save.

Read more on how to create lovely memories with your family by visiting this Joseph Cianciotto blog.