A lot of people have developed this crazy notion that in order for you (or for your children) to go to college, you have to have a massive amount of money saved up. While having money saved up is never a bad idea, just because you never know what the future is going to hold, saving up money for a college education is a completely optional use of the money you make. This flies in the face of the financial advice that many people receive from every side, where they encourage you to sock away massive amounts of money so that you can help your family to become more prosperous through higher education. While becoming more educated can certainly help one’s earning potential, saving for it may be a silly waste of time and money.
Consider that there are always going to be grants and loans available to a student. If the student is willing to apply for all different kinds of grants, they may have a significant portion of their college tuition paid for without having to save any substantial amount, and without having to take on a significant level of debt in the process of their education. While getting out of college without savings or debt is extremely rare, it may be possible if you can combine grants and scholarships together in the right measure.
Never underestimate the power of loans. While loans typically inspire terror in people, keep in mind that the average rate of a student loan initiated today is in the two to three percent range, if even that. Student loans are notoriously very low interest (if you refinance them through government entities) because you have to pay them off. Considering that you get almost as long as a mortgage, the interest rate is tiny, and it helps your credit, it may even be in your best interests to take on a small loan even if you don’t need it.