How to Save Up for Your Kids’ College Education
With inflation still stubbornly high, the idea of being able to save for your child’s college education can seem scarier than ever before. You want to be sure you can give them the best experience possible, afford their top-choice school, and help set them up for their future, but how can you accomplish that goal?
We’ve got many ways that you can start saving money today, building your child’s college education fund slowly over time. So, let’s take explore the most useful tips.
Cut Back on Expenses – Free Up Cash for Savings
Whenever you’ve got a savings goal, a good place to start is with the budget. You need to know how much money you can save and be realistic about your goals. If you aren’t currently able to put that much aside, try looking at areas of the budget that can be reduced. Are there any areas that you are overspending on?
Some tips for saving money on monthly expenses include:
- Cut back on entertainment expenses
- Drive smarter not more often, always map out your route in advance
- Use energy-efficiency tips to save on electricity expenses
- Stop dining out or ordering food in
- Cut back on how many streaming services you are subscribed to
- Find a cheaper cell phone plan and provider
The more you look at your budget the more savings can often be found. Sometimes it just takes a little creativity.
Start Saving as Early as Possible
And because you may not be able to save a lot of money at once, you’ll want to start saving as early as possible to secure your child’s future. Perhaps your child is very young right now and college is the last thing on your mind, well this is the perfect time to start a savings account for them. Be sure to look at a variety of savings plans taking into account the interest, if they offer any tax savings or incentives, and if any are sponsored by the state or federal government.
Consider Investing in the Stock Market
The stock market can also be an avenue worth pursuing. While there are no guarantees when you invest in stocks, there are those that are a little safer if you don’t mind being in it for the long haul and not expecting quick returns.
Worth consideration is monthly dividend stocks because as the name implies, they offer a constant income. Some companies will issue a dividend monthly, which can help you track savings a little better. It’s worth noting that the majority will pay quarterly or yearly, so finding monthly payers can be a little harder. It’s also important to research the company you’re investing in to ensure it’s a wise decision.
Supplemental Income Can Grow the College Fund Faster
Any effort to reduce your need to borrow money for college will pay off in reduced stress after you graduate. If think you’re going to be applying for a student loan because you are unable to save enough, don’t be discouraged. Anything you can do today to reduce your monthly loan payment, when you begin working in your chosen career, will be well worth the effort.
To grow a college fund faster than some of the other tips allow, coming up with ways to earn supplemental income outside your regular employment really helps to add to your bottom line. This is extra money not needed for any current bills, which means every penny you make can be put aside and earmarked as savings.
Money earned that goes direct to savings can be very motivational. Working an extra job for a few years can result in a sizeable savings amount, and then you can let it sit in a savings account and earn interest until your child needs it. This is a labor-intensive savings option and won’t be easy, but it’s also incredibly effective.
Supplemental income can include anything from apps and online income platforms, to a part-time job or side hustle. Brainstorm ideas with your family. Try to think about something you excel in or that you love doing so that it won’t seem like such a hardship.
You Can Make a Big Difference
Even if you’re not able to save for your child’s entire college education, any bit you can offer will help and will make a huge difference.
