As a mom, it is your job to keep everyone on track. You are responsible for ensuring everyone is fed and clothed. You also have to think ahead to college. By taking control and starting a college savings account for your children, you can help to give them a bright future. However, when finances are tight, as is the case in many homes, it can be tough to figure out how to save. Here are some college savings tricks you can enjoy.
Know the Options
While you certainly can open a savings account to put money aside for your child’s college, there are some other options that allow you to make more use of your money. The most popular choice is a 529 plan. You can either use a 529 savings or 529 prepaid tuition plan. The savings plan is similar to a retirement account except you can get a lot of tax breaks with them. The money in these accounts is invested to hopefully help build it at a quicker rate. The prepaid tuition plan, as the name suggests, lets you prepay tuition at your chosen institution at current rates, which can save you big on inflation. Reviewing your college savings plan options is a good first step.
Develop a Plan for Saving
Before you can start to save, you need to know you have the money to do it. You should go over your budget and add in college savings as an expense. Putting it in your budget makes it much easier to just slip the money away each time you pay bills.
You also can go over your bills and try to find a way to reduce them. Often shopping around or just calling in can help you get lower rates. A good trick for saving on insurance is to visit a local insurance office. The face-to-face interaction makes things more personal and encourages them to work hard to find you a good deal.
Give Up Something to Help Out
Sometimes extra money is hard to come by. However, most people have one or two things they spend money on that they don’t really need. Fast food lunches and expensive coffee drinks are two examples. These things may be something you really enjoy but cutting them out or just cutting them down can free up a nice amount of money that can go towards the college savings.
Use the Grocery Store Trick
When you are shopping for groceries, always hunt out the deals. These days most grocery store receipts will include a line that tells you how much you saved. This leads to a nice trick to saving money easily. Every time you grocery shop, you put whatever you saved in a savings account. This can add up really fast, especially if you shop for deals and use coupons.
Saving money for your kid’s college expenses doesn’t have to be a stressful endeavor. You can work ways to save into your everyday life easily. It is all a matter of just being a bit more aware of how you spend and making a few new choices in what you spend.
Are you or did you save for your child(ren)’s college?