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[H1573]How To Save For College
by Elisa Cruz, Eli

Paying for college can be a real headache. Every year it seems like the college costs keep rising but it can be very hard to find a job that pays enough to keep up with that rising bill. If it seems like the initial price tag is too high for you to further your education, don't fret because there are ways to lower the bill.

If you have been thinking of attending college outside of your state but the college tuition cost seems too high, you might want to think about attending in state instead. Universities generally charge lower tuition to in state students as a reward of sorts for not leaving the state. You should check with the colleges in your state to see what their in state college tuition rates are and how they vary from the out of state rate.

If you are set in the decision to attend college out of your state of residency but still don't know if you can afford their out of state tuition, another option is to move to that state and establish residency before attending college. The guideline is generally that you have to live in the state for one year without attending college to establish residency. However, this may vary from state to state. This just depends on if you feel you have a year to spare to gain residency. It may set your graduation date back a little but you will pay less in college tuition as a result.

If you don't want to wait to establish residency before attending college, another option is to see if that out of state college offers reciprocity to students from your home state. Reciprocity is usually offered by college to surrounding states and usually lowers college tuition to a rate the same as in state or close to it.

Another way to save on college tuition is to attend a two year college to complete all of your general classes. Two year colleges generally offer lower tuition rates. While you usually can't earn a bachelors degree at these colleges, you can usually complete all of the general classes that are required at a four year school. You could than have the credits that you earned at the two year school transferred to the four year school. This would at least save some money for two years on your tuition. You would want to fully research this option before deciding on it though because credits are not always transferable.

If you decide to attend college in your home state because it is too expensive to go out of state, but still want some type of experience elsewhere, you can also apply for a college internship in another state. A college internship in another can still give you an experience else where and can give you an idea if you would want to move there after graduation. A college internship in another state would also be a good alternative because you can get paid for being there rather than paying out of state tuition.


The list of hard choices and sacrifices parents make for their children is endless. Send them to soccer camp or little league, enroll then in private or public school, give them a 10p.m. or midnight curfew - the list goes on and on. One thing that shouldn't be on that list - save for college or retirement.

It might sound harsh, but parents shouldn't sacrifice their own financial security for the sake of their children. What they should do is figure out how to save for their children's college education and for their own retirement at the same time. The sooner they figure this out, the better.

Unfortunately, saving usually ranks lower on the list compared to other priorities. People in their 20's may be focused on paying off student loans and credit card debt. People in their 30's may be focused on raising a family and juggling the costs that come along with that, such as buying a first home, paying two car payments, etc. When people reach their 40's and 50's they are concerned with saving for their children's college education and their own retirement. And this is where the problem lies.

Getting a late start can be a challenge, but it shouldn't stop you from being able to retire at a reasonable age and send your children to school. Here are 5 tips you can use at any age!

1) Think Realistically - Most people don't have a concrete idea of how much money it takes to retire. Since the financial needs of each person will be different, try to imagine what you want your retirement to be like. If you want to maintain the lifestyle you have now plus travel, chances are you will need 100 percent of the salary you earn in your working years to live comfortably. If you plan to live a much simpler life in a less expensive area, it might be possible to get by on 60% of the salary you earn in your working years. If life expectancy is about 80 years and you retire at 65, you have 15 years to fund. Do the math.

2) Start Early - And if that's too late - START NOW! This applies to college and retirement saving. The sooner you start saving, the more interest your money will earn. Don't wait until it's easier to save, that will never happen. If you think it's impossible to save, trick yourself. Your bank can set up automatic allotments to your savings account. Start with $200 a month. You won't see the money, so it's easier not to spend. If you feel comfortable without $200 a month, increase the allotment to $300 and so on. We tend to adjust to what we have. Ever wonder how millionaires go broke?

3) Look at all the options - There are more paths available for financing a college education than there are for retirement. For Example: You can't get a retirement loan, but there are many types of student loans. Scholarships and Grants are another great source. Many students will assume they won't qualify. Encourage your children to always apply, because many times acceptance is based on more than grades and income. Compare the costs of community college, public and private universities. With loans, scholarships and grants, sometimes the difference between the school of choice and the school of second-choice isn't as much as you thought.

4) Take Control - Companies are starting to drop pension plans in favor of employee contribution plan, such as 401(k)s, primarily because they're less expensive. So employees are left responsible for figuring out how to invest. Don't just follow what your co-workers are doing. Start researching, find out how to monitor the performance of your company to bring in a consultant to give an investment seminar.

5) Pass on responsibilities - Before and after your children start college, it's a good idea to give them certain financial responsibilities. Whether the responsibility is as small as paying for groceries and books or as big as paying rent, a car payment and insurance - it can be extremely beneficial. There are many jobs that allow time for school and studying. Encourage them to seek out paid internships, part-time jobs on campus or seasonal work during winter and summer breaks. Many times entry-level jobs will teach your children good work ethics and making financial decision will allow them to have more confidence in their abilities.

It is possible to save money for college and retirement simultaneously. The key is to set goals and start now.
Article Source : Pg. 61

About Author
Both Elisa Cruz & Daniel J Wansten are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Elisa Cruz has sinced written about articles on various topics from Pregnancy, Hair Removal and Painting. More information on how to pay ,. Elisa Cruz's top article generates over 27100 views. to your Favourites.

Daniel J Wansten has sinced written about articles on various topics from Home Management, Travel and Leisure and Finances. Daniel Wansten is the Author of Cash For College, and founder of Professional Education Services. PES is an independent education consulting firm providing expert financial aid advice to college-bound students and their families. For more information and. Daniel J Wansten's top article generates over 1900 views. to your Favourites.
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