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During the “Make Your Life Better TODAY” series, Suze Orman shared good advice about hot to cope with five specific situations in your life that you could be facing. During this post I will summarise the advice that Suze Orman gave about saving for your child’s future.

If you are a parent saving for your child’s education you might find it a real worry or anxiety. Parent’s base their lives around children and saving for their education can be very important. You might have to make the decision whether or not you can afford to save for your child’s education.

With mortgages rising in price many parent’s are finding it difficult to contribute to their retirement savings and have no money for emergencies. Many families are finding that they have to put their own needs before their children’s.

September will soon be here and college education can run to as much as $35,000 a year. Although it is better to save sooner rather than later you need to take into consideration if you can afford to save. You can take out a 529 savings plan which is sometimes the solution for many parent’s. Your own state will probably run a 529 savings plan. With a 539 plan your money is invested either in a contract that promises to pay for at least part of the future tuition costs for your child (this is called a prepaid tuition plan) or in a combination of stock and bond mutual funds (this is called a college savings plan). Either way, the value of your investment grows tax-free until withdrawn. In the years when withdrawals are used to pay for college costs, the growth is taxed to the student, not to you.

Paying for your child’s education is an investment that you need to start saving for. If a family starts saving $100 a month and their child is in middle school by the time they are ready for college you could have $11,000. If you have continuously saved for your child’s education by the time they are ready for college you will find this money extremely helpful.

If you put your child’s education savings on autopilot the money will come out as an automatic deduction from your earnings. You might also like to look at financial aid options, but all the time you need to be realistic about what you can afford.

Visit Mickie at either of her Today.com blogs, The Osbourne’s or her blog about the Performing Arts.

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