Money In The Bank: A closer look at how small investments add up to large savings for your child’s future.

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By Mia Bolaris-Forget

While statistics show that the cost of university and college education is has down, or at least has traversed SLOWLY upward in recent years, it still remains a fact that education has a price tag. In fact, the average cost of a private education costs between $20,000- $25,000 per year, per child and a state run university has attached to it a price tag of $5,000+. And, if you just had a child, are expecting or are planning on having one, you can expect that cost to increase significantly (according to experts by about 5% per year) by the time he/she is ready for college.

So, if you plan on educating your family you may first want to get yourself an education in saving for theirs. Here are a few expert suggestions:

1. Invest $2000 in a diversified stock fund. This investment is quite lucrative with a yield of 10% annually on your investment. By the time your child is ready for college, your savings could be worth over $10,000.

2. Make an additional annual contribution to your initial investment. Consider adding another $2000. With even this moderate increase and a growth rate of 10% yearly, over a time frame of 18 years, you are looking at an approximately $100,000 “nest egg”.

Long Island Investment Tips Articles > Money In The Bank: A closer look at how small investments add up to large savings for your child’s future.