What's the Value of the College Fund You Started Years Ago?

If you have kids, you probably want them to go to a good college where they can get an education. This isn't always easy, especially if they don't have a lot of money. While true, with a college fund, you can help them with their cause. Then, your son or daughter can go to school without any fears. With this in mind, many opt to start a college fund. But, while doing so, many forget the true value of the funds. Here are four ways to value your college fund.

Time: Remember, if you have a kid, he or she may not head to school for a long time. If your son or daughter is under the age of 10, you have plenty of time to save money. In reality, most college savings funds are not well-funded at this point, and you don't need to worry about catching up. On the other hand, if you have a teenager or someone who is about to go to school, you will probably want to add some more money and think about their future. Remember, there are options for college savings, and you must think of the long-term when you look at their current situation.

Value in cash: Let's face it, when looking at your accounts, you will want to see them full of cash. If they are not, you will want to save more money and think about your children's future. To do so, simply log into your accounts and check the daily balance. If you are investing in the market, you may be in for a sweet surprise. If you invest by putting money in CD's or other vehicles, you may not have enjoyed the high rates of return. Either way, by looking at the raw numbers, you can get an idea where you stand. Then, you can look at other options for college savings as you can certainly catch up and put in more money.

ROI: Okay, so if you know how much is in the accounts and how long until your child will go to school, you will next want to look at your ROI. If it's low, don't panic. However, in the long run, you will want to try to beat the stock market averages. At the least, you will want to match the stock market. Then, you will have an easy time meeting any long-term financial obligations. While this is all true, don't chase gains as you don't want to end up watching your investment dollars wither away. This is especially true if your children will go to school in the next few years. Remember, the market is a great tool, and you will want to take advantage of it in the wisest manner possible.

Needs: Without a doubt, if you are going to send your kid to school, you will want to assess his or her needs. For some, they are modest. Other times, a person who wants to become a doctor will need a lot of cash. Not only that, some kids will have other college savings funds and don't need as much cash. Either way, when looking at this, you can save enough money for your kid.

If you are saving for college, you will want to look at multiple metrics. Then, you can decide on your best course of action to help out your child.

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