As a mom and a teacher, I know the importance of education. However, saving for your child’s college fun can be very daunting! Perhaps you are already adding to your child’s piggy bank. However, Hayden is here today to offer some creative, outside-the-box ways for us all to put away a little extra!
5 Creative Ways to Save For Your Child’s College Fund
By Hayden Sewart
Most parents want to see their children succeed in secondary education after high school. However, to do so, it’s essential to establish a college fund to help offset expenses. Although, it isn’t necessarily the easiest thing to do, it’s important to get creative when saving for your child’s college fund.
Create a 529 Plan
One of the easiest ways to start saving for a college fund is to create a 529 plan, in which families can set aside money into savings accounts with interest, without being taxed for it. Later on, their kids can use the money saved to pay for college expenses, like tuition, books, computer, etc. Fortunately, this plan allows contributions to be free from both state and federal taxes. A 529 plan works similar to a 401k plan since contributions are usually invested in money market funds or bonds. However, you can only use the money in the 529 plan for qualifying expenses, such as books, tuition, room and board, from accredited schools.
Lower Your Electric Bill
Lowering your electric bill by unplugging idle appliances like toasters, TVs, computers, and heaters can save you 10 percent and more on your electric bill. Keep in mind that even if you turn an appliance off, it may still use electricity, so it’s important to unplug the device from the outlet completely. Also, instead of plugging appliances into outlets, plug them into power strips, so when you want to turn them off, you only have to flip a switch. With these simple steps, you can drastically lower your electric bill every month, and contribute more to your kid’s college fund.
Sign Up for Upromise
If you want to earn cash-back rewards for online and in-store purchases, signing up for Upromise can be very rewarding for your bank account. The money you end up saving and getting back can be forwarded to your children’s college fund and ultimately help you pay for their tuition.
If you aren’t doing so already, everyone needs a budget to better organize their expenses. However, creating a budget can help you save money in ways you never thought of, which you can put towards your child’s college fund. When making a budget, write down expenses you no longer care for, such as a gym membership you never use. Before you know it, you’ll have serious savings funding your kid’s college tuition.
Bundle Your Utilities
Combining your cable, Internet, and phone services is a great way to save a lot of money. If you are going to be using these services anyway, you might as well do it smartly. Sign up for all of these services through the same provider. By doing so, you can spend less money every month which will then allow you to save more for your child’s college fund. Before bundling your services, do some comparison shopping to find the most cost-effective services for your needs.
College is getting more and more expensive, meaning you’re going to have to put even more money towards your child’s college fund. Hopefully, with the help of this guide, you’re able to find new, creative ways to save for your kid’s tuition, books, room and board, etc. Although saving isn’t exactly fun to do, it’s important to prepare for you, and your child’s, future.