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Financing Your Child's Education

If you are one of those parents who want to provide for the full financing of your children, we have a bad news for you. This is no longer needed. A better tactic will be to see your child's performance at school and judge his/her potential for future success. If you child is one of those who prefer to spend more time partying than studying it will be a waste of time and resources to save for his/her education. Instead you should use this money to provide for your retirement.

It will be good to teach your child the real value of money by finding them a job and see where the money comes from. If, however your child does have a potential, then you should provide for the financing of his/her education or a portion of it. You don't have to cover the full cost of university studies, since many other financial resources are available such as:

  • Scholarships
  • Federal aid
  • Grants
  • Loans

The important thing to remember is first to allocate money for your retirement, and only after this start saving for your child. This is recommended in order to ensure that you don't squander money on education that your child may waste by spending like seven years because of dropping or failing courses.

Since there are many additional sources for financing your child's education as the ones previously mentioned, you should first take care of your retirement finances, because there is no one who can provide them for you.

Final Piece of Advice: Keep the assets for your child's education in your name, since will favorably influence the calculations for financial aid.

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