Earning for College
It is important for young children to start thinking about earning and saving for college even though getting a job is probably not on the top of their to do list at this age. If children understand at a young age that saving for a college education is an important family goal, they will also understand that college planning and preparation should also begin early in their lives.
Students that have made an investment in their college savings funds have a vested interest in their education. They tend to perform better academically because it is their money making their college dreams come true.
A final consideration before persuading your child to invest in their own postsecondary education savings fund is that amounts over $3,000 will impact the financial aid a student receives. For every dollar above that threshold, approximately 20 cents is subtracted -- first from federally funded scholarships and grants the student would have been eligible for, then from federally funded loans. If your child has a college savings account in their name, it might make sense to consider having them contribute to a 529 Plan, or other tax-savings vehicle, once the balance reaches a certain threshold.