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Monday, September 10, 2012

How to finance kid college

A kid needs to go to university so they will have a better life. They have opportune to get a good jobs If they pass the college. They might get manager position and get wealth. Unfortunately, Sending the kid to a college is not easy because its fee is expensive especially in private college or the best college.

You can start allocate money when your child is born. Calculate the approximately cost of college. Find information about cost of college and forecast the cost with present value.

Do not use the money for anything moreover useless things. You should be disciplined with kid college money.

Here is how

1. Saving part of your salary to the account that dedicate for your child college. Consider the amount of children. More children,more money.

2. Invest early for long term investment like value investing. Buy some blue chips stock and get dividend for it. Create a portfolio of stock for your college kid. Reinvest the dividend to the stock or other investor. You can redempt when your child enter the college.

3. Buy asset that dedicated to your children college. For example: buy a house and hire it. You can collect the rent fee for your child college. Someday, you can sell the house if you have no money to finance your kid college. In my country, the parent buy some farm crop to support their child college. They use or hire the land to other people. The parent will sell the land if only the child need college fee.

4. Buy precious metal like gold, silver, platinum and others. Precious metal value is stable and it may good for your child investment. It can help us to protect us from recession. In bad recession the gold value could increase many times. I suggest to buy certified gold bar. Buy it and safe it at deposit box.

5.Encourage your child study hard so they can get scholarship. Scholarship can help to light the kid college. Some university, foundation, and company offers full scholarship that pay the college fee, book, apartment, and others.

By studying hard, they have a good future and they can work at any company.

6. Order your kid to get freelance jobs if your money is less. Someday, they will be able to fund his or her college. The cons of jobs is that jobs can disturb the kid college.