No, a parent's job is to raise them to the best of their ability. If the parent has CASH to pay for college (without missing a beat and has saved for their own retirement) then by all means.
Otherwise, the child should be looking for scholarships (http://www.fastweb.com/) like it's a part time job. No parent should go into debt to fund their child's college education.
Ideally, it would be good to save for college through the years if you can, but we all know that LIFE can get in the way of that.
So, how do I save for my child’s college if I'm able?
You save using 529 Plans or an Education Savings Account (http://www.savingforcollege.com/), if your family’s finances will allow. This means you have:
a. An emergency fund
b. Have paid off your debt or paid down enough to have serious wiggle room in your budget
c. Are continuing to contribute to your own retirement fund
If you are all set with those 3, then set aside a monthly amount to put into your child’s education savings. Your child should still begin looking for scholarships in junior high.
Last year I didn’t have much money to buy Christmas gifts. I’d like to start saving now for this Christmas, but my budget is tight. How can I make this happen? Sandy – Washington, D.C.
Your first priority is your household responsibilities. Do a complete budget; don’t leave anything out that you may spend. If there’s not enough money as it is, you will have to table the Christmas savings idea and find ways to increase the money coming in by getting a part-time job, cutting back, etc.
Once you are able to pay your monthly bills with no problem, THEN you can set aside money each month into a separate account for Christmas. Write down each person’s name and the dollar amount you want to spend on them. Total it up and divide by the number of months left in the year. That is how much you will need to save each month in order to buy for everyone on your list.
If you have extra money, is it better to apply it towards debt or your emergency fund?
Macarena – Coconut Creek, FL
Extra money should go toward your emergency fund if you haven't yet reached your $1,000. If you have reached it, stop adding and put all extra money toward paying down debt.
What is the best way to pay down debt? – Jennifer - Rochester, NY
The best way to pay down debt is from smallest to largest. Write down everyone you owe, EVERYONE, and create a schedule for payment. WHY smallest to largest? Because it allows you to build momentum, eat the elephant in smaller chunks. Check out table below and go here for downloadable version: Debt Payoff
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