Giving your child the gift of a college education is one of the greatest things you can do for them. The education they receive can provide a world of knowledge and open doors to fantastic career opportunities. Unfortunately, getting a college education can prove to be very expensive. Here are a few tips to help you save money for your child’s future tuition:
Stick to the Savings Plan
You should plan a savings strategy well in advance and firmly adhere to it. Maybe you want to only save $25 a week. Perhaps you can afford to set aside even more. Either way, staying consistent with your savings plan can ensure that you will have all of the money you need when it’s time to start making the tuition payments.
Open a Savings Account
Putting your money into a savings account is one of the easiest ways you can save for your child’s college education. You will know that the money is securely in the bank and has been specifically designated for going toward the education fund. Plus, savings accounts earn interest over time, giving you even more money.
Invest in a Qualified Tuition Program
These programs, also known as 529 plans, will allow you to start making payments for your child’s education in advance. One of these plan types will allow you to start making payments at a certain school under their current tuition rates without any price fluctuations. Another plan allows you to make tuition payments redeemable at any accredited school, although tuition rates are not guaranteed to stay the same. Either plan will allow you to make gradual payments over a longer period of time.
Take a Part-Time Job
You may already have a hectic work schedule, but taking a part time job can definitely help you get the funds you need for your child’s tuition. This part-time job can be worked on the weekends or any other time you may have off from your other career. If your child is a teenager, they can also get a part-time job to work when they are not in school as a means of contributing to their college fund.
Don’t Borrow Money from Fund
Even though it may be tempting, borrowing money from the college fund can greatly diminish its amount. It can be difficult to pay back the money once it has been taken out for use. The temptation can become overwhelming if you have the money sitting in a cashbox or piggybank at home. Keeping the money in a bank or other financial institution will likely make it less tempting to withdraw any funds.
Following these tips is a great way to get started on the road to saving money for your child’s college education. Sending your child to college can be stressful enough, but having enough money for tuition can help alleviate some of the worries.
Richard Barnes is a writer and student earning his political management degree online.
- How Education Tax Credits Can Help You Get To College! (2012tax.org)