5 Easy Ways To Save For College
Paying for college shouldn’t stand in the way of being able to attend. There are several ways that you can come up with the money. Here are 5 easy ways to save for college that you can use to ensure you will be able to attend. You don’t want to graduate and owe a large sum of money for student loans.
Parents can start a 529 Plan as soon as child is born. They can invest in it each month. Investing even $50 or $100 per month can add up to between $17,000 and $20,000 saved by the time a child is ready to go to college. That money can definitely help with the overall cost. Some states have matching incentives too. This means if you invest $100 per month, there will be $200 per month placed into that 529 Plan.
It is a good idea to find out about how the 529 Plan works where you reside. Even if you didn’t start when your child was born, it is never too late. Any money you put into the plan now will add up for college and help out.
Funds Instead of Gifts
Family member may have a hard time deciding on gifts for your kids. They may buy them toys, clothing, or other items that your kids really don’t need. You can ask them to donate towards college rather than buying such gifts for birthdays and the holidays. Those donations to either a savings account or a 529 Plan can certainly enhance the amount of money that is available for college.
This is really helpful too when it comes to applying for financial aid for college. The government will look at what you have saved in your 529 Plan for your child. However, anything that grandparents or other family members have put into another 529 Plan won’t be counted and reduce the amount of financial aid your child may qualify for.
Teach your child the value of money from an early age. When they are employed with odd jobs, babysitting, fast food, etc. that money belongs to them. However, They should agree to allocate a percentage of those earnings towards their college fund. This investment on their part adds up and it also gives them a sense of pride that they are doing something for their future.
Bonuses and Extra Checks
If you get paid weekly, there may be months when you get 5 checks instead of 4. Put that extra check into the college fund. It is an easy way to do so without reducing anything from the household budget. If you get any type of bonuses from work or an income tax refund, allocate a portion of it towards the college savings.
Reduce Unnecessary Spending
Think about the unnecessary spending that can add up quickly in your household. Going out to dinner and a movie can cost over $100 for a family of four. By ordering pizza and renting a moving at home, you can reduce that cost to about $30. Yet you still get to enjoy family time with each other. You don’t have to go without, but you can reduce spending that isn’t necessary so you can save more.