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[00:00:00] Hi everyone. Jonathan here from MEFA, and today I am going to spend 90 seconds telling you why saving even a little bit for college is worthwhile.

We all know the story. College can be expensive with some four year universities carrying a yearly price tag of over $70,000. Many people like me would see that and think, there’s no way I can save that amount. So why should I bother saving anything at all? Well, here are a few things you may not know.

Number one, not every college has a high sticker price. There’s a wide range of college price tags and there are many two and four year options that are more affordable than higher price schools. Number two, the sticker price is not what most families will pay. Most families will qualify for some level of financial aid from the government, from the college, or both.

And savings has a minimal impact on financial aid eligibility. In fact, most need-based financial aid. Is [00:01:00] based on what you make, not what you have saved. Number three, to pay for college. Many families end up borrowing loans and savings can help reduce or eliminate the need to borrow. Number four, finally saving for college sends a message to a child.

Studies have shown that when a child knows that money is being put aside for them for college, they’re much more likely to attend and graduate. So your college savings will help you in many ways. Thanks for watching. For more information, please visit MEFA.org or call 1-800-449-MEFA.