10 Tips for Parents to Save Money for Their Kid's College - * Save a little bit every month. It goes back to the old adage of a little going a long ways. Few parents can afford to put away enough for their children's college fund in just a year or two. But if they put away a little each month for eighteen years after their child is born, that can certainly add up when it comes time for the first tuition bill.
* Invest. Make your money work for you. Just putting money away each month may not be enough, especially when factoring in inflation. But by having that sum compound on a monthly/quarterly basis, the total can increase by 50% to 100% over the principal alone. The recommendation here would be to go for safer investments over risky endeavors.
* Consider community/junior colleges. There is a stigma associated with junior college as an academically inferior option. However, many JCs offer quality programs and classes that will transfer to 4 year schools. These classes can be taken for half the cost of those four years schools.
* Analyze costs of public vs. private schools. There are advantages to going to certain private schools, just make sure that your child would realize those advantages. Do not go to private school just to go to private school. Every year, numerous students go to private schools when they would get the same benefits from a public university.
* Start in state and work your way out. In-state schools often offer huge discounts vs. their out-of-state counterparts. You're already paying for them with your tax dollars, might as well put them use.
* Scholarships. These are one of the best ways to save money on an education. Have your child apply to any and all scholarships you come across. Many people do not realize that hundreds of scholarships go unclaimed every year purely because nobody knows to apply for them.
* Grants. The great thing about grants is that they (typically) do not have the same qualifications that scholarships do. Scholarships often require certain academic/community standards be met and maintained. Grants can be obtained for reasons of need and necessity.
* Shop around for financial aid. Too many families go straight to Sallie Mae or just go through the local bank for financial aid. Shop around to find the best rate. The better the long term rate you get (even if it involves a higher monthly payment), the less you will pay on the total loan in the long run.
* Go used. One easy way to save money across the board is to buy used items instead of new whenever possible. This applies to houses, cars, furniture, electronics, etc. No need to pay a premium on everything new in situations where used will do.
* Avoid other forms of debt. This is easier said than done. But the fact of debt is that you do not only for that debt, but also much more for the interest rates on it. If you can avoid these added costs, saving money for college becomes much easier.
* Invest. Make your money work for you. Just putting money away each month may not be enough, especially when factoring in inflation. But by having that sum compound on a monthly/quarterly basis, the total can increase by 50% to 100% over the principal alone. The recommendation here would be to go for safer investments over risky endeavors.
* Consider community/junior colleges. There is a stigma associated with junior college as an academically inferior option. However, many JCs offer quality programs and classes that will transfer to 4 year schools. These classes can be taken for half the cost of those four years schools.
* Analyze costs of public vs. private schools. There are advantages to going to certain private schools, just make sure that your child would realize those advantages. Do not go to private school just to go to private school. Every year, numerous students go to private schools when they would get the same benefits from a public university.
* Start in state and work your way out. In-state schools often offer huge discounts vs. their out-of-state counterparts. You're already paying for them with your tax dollars, might as well put them use.
* Scholarships. These are one of the best ways to save money on an education. Have your child apply to any and all scholarships you come across. Many people do not realize that hundreds of scholarships go unclaimed every year purely because nobody knows to apply for them.
* Grants. The great thing about grants is that they (typically) do not have the same qualifications that scholarships do. Scholarships often require certain academic/community standards be met and maintained. Grants can be obtained for reasons of need and necessity.
* Shop around for financial aid. Too many families go straight to Sallie Mae or just go through the local bank for financial aid. Shop around to find the best rate. The better the long term rate you get (even if it involves a higher monthly payment), the less you will pay on the total loan in the long run.
* Go used. One easy way to save money across the board is to buy used items instead of new whenever possible. This applies to houses, cars, furniture, electronics, etc. No need to pay a premium on everything new in situations where used will do.
* Avoid other forms of debt. This is easier said than done. But the fact of debt is that you do not only for that debt, but also much more for the interest rates on it. If you can avoid these added costs, saving money for college becomes much easier.
10 Tips for Parents to Save Money for Their Kid's College
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