Five Easy Ways to Save Money for Your Child’s College Fund

Saving Money for College [image]

Five Ways to Save Money for College

The cost of a college education has become increasingly outrageous around the world, especially in America. According to InflationData.com, average college tuition in America has increased by 466.80% since 1986, while the inflation rate increased by 107%. Although this statistic might seem terrifying, especially considering a college degree is all but necessary to have a successful and satisfying career, if you plan accordingly, college can be affordable. Start early and invest prudently. Here are a few easy ways to save painlessly for college:

1.      Have your college-bound kids work every summer that they are eligible to work before they enroll in school.

Having your child work four or five summers before he or she begins college is a great way to save money that can go toward your child’s personal expenses. A few summers worth of work will enable your child to establish their own college fund so that you won’t constantly have to be sending your kid money while she studies. After tuition and related expenses, personal expenses in college can be fairly steep, so this is a great way to off-set the cost of college.

2.      Cut down on extraneous expenses.

There are many things that we purchase on a regular basis that we can easily do without. Although it may not seem like much money every time you go out for dinner, buy a coffee at Starbucks, or take your family to the movies, these small, extraneous expenses add up. An easy way to cut out these expenses without sacrificing too much is to have one or two weeks out of the month in which you institute a no-extraneous purchases rule—you eat and entertain yourself at home.

3.      Start a separate savings account.

Starting a separate savings account solely for college tuition and expenses is the best way to accumulate enough money over several years. There are various savings plans and accounts, particularly the 529, that are designed for college funds. The 529 plan is a great option because of the many tax breaks and options as a donor. For more info on the 529 savings plan, check out this article.

4.      Have your child apply for financial aid and scholarships.

Many parents and college-bound children don’t bother to go through all the paper work that is required to receive federal and institutional aid. And this is precisely why thousands of families lose out on tens of thousands of dollars that could go toward a college education. Even if you think you might earn too much to qualify, still fill out all the paperwork just in case. It’s also a good idea for your child to apply to as many outside scholarships as possible—scholarships represent another source of untapped money for college.

5.      Buy college essentials the smart way.

There are tons of different ways that you and your college-bound kid can save when your child is enrolled and preparing to go to college. For one, buy all books used and online well before classes start. Buy used furniture for your child’s dorm room. Come up with a monthly budget that your child can stick to based on summer earnings. There are tons of different ways that you can save on the little things entailed in going to college, so that you’ll have enough for the big things like tuition.

Of course, paying for college these days will never be easy, especially if you have multiple college-bound children. Still, if you plan several years ahead, you’d be surprised by how many options exist to ensure that you can pay for a higher education without having to sacrifice too much. Good luck!

Guest Blogger By-line:

This guest post is contributed by Lauren Bailey, who regularly writes for best online colleges. She welcomes your comments at her email Id: blauren99 @gmail.com.

2 Comments

Filed under save, Saving Money Now Series, savings

2 responses to “Five Easy Ways to Save Money for Your Child’s College Fund

  1. One tip I would like to add is to have a certain amount of money automatically debited from your account towards a separate savings account; you are less likely to miss the money if you don’t have to think about transferring it. Financial aid and grants can also make a difference.

  2. Hi there TOC! We’re happy that you stopped by. And those are terrifc points. Having the money automatically debited is a great way to put extra money aside without really noticing that you have less to spend.

    And grants and financial aid certainly can help lessen the financial burden associated with going to school.

    Thanks for stopping by!

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