We just had our first child. Relatives have given us a small amount of money we want to begin investing for college. How should we invest this money and how much should we add to the fund every month?
College costs are increasing each year and it's important to have a long-term plan. The amount that you decide to set aside each month for your child's college fund should be determined by your overall financial status and also by the long-term projections for family income. In terms of what type of investments to consider for a college fund, it's sound advice to look at investments that provide a reasonable expectation for growth but that also have limited risk. There are currently many publications available that deal with college planning as well as a wealth of information that is available on the Web. The Family Finance section of FamilyEducation.com has the tips, calculators, and information you need to start your search.
Congratulations as you embark on a very special time in your lives. Sound planning is crucial if you want your child to have a full range of options and choices. Good luck.