Print Article for : Saving Money For College

Your Online Guide » Colleges & Universities » Phoenix University of

[S121]Saving Money For College

by Charles Kassotis, Cha

Even if college is years ahead for your son or daughter, or if you aren't sure whether you plan to go on for university study following high school or community college, it never hurts to set aside savings that can be used for this worthwhile plan when the time comes. College costs continue to rise each year, with some institutions increasing tuition rates by five percent or more. It's a good idea to start saving now so your money can compound at a decent rate and bring in a profitable return for future studies.

1. Start a savings plan. Have an affordable sum deducted from your paycheck and placed directly into a savings account. Forget about the money except occasionally to check on interest rates and balances. Over time, it will add up, and after several years you will have a fair amount to apply to college expenses.

2. Set aside a portion of cash gifts. Instead of spending it all in one place or for several things, take ten or fifteen percent out of a cash gift and add it to your savings account. If you get $100 for a Christmas present, put $10 into your savings account and spend the rest. Do the same for any unexpected windfalls.

3. Contribute a portion from each annual paycheck increase. If you get a five percent raise, divert one-half percent to savings. Do the same for year-end bonuses or other cash gifts associated with your job. You won't miss the money if you do this up front, and the savings plan will increase that much more rapidly.

4. Get a part-time job. Whoever is destined for college could tackle this option, placing most or all of the income into a college savings plan. The job might take just a few hours each week or over the summer, as well as Christmas and spring breaks. Have the college-bound person keep track of the savings.

5. Invest in a mutual fund or money market account. Request that relatives give savings bonds instead of candy or toys for holidays and birthday gifts. Use these, and part of the monthly allowance, to open a mutual fund account. Adding $25 monthly can make a difference over the long haul, especially if the stock or the fund performs well.

Odd jobs, inheritances, and small scholarships won in high school can go into the savings account as well. The important thing is to keep depositing money into the account, don't take anything out, and be patient as you wait for the account to grow with interest to become the financial support you need to make college dreams come true. Even if you are unable to save all of your college costs, you can save a sizable amount that will go a long way toward paying that hefty tuition bill, book and lab fees, or general service costs.

Have you thought about how you will finance their education?
If you haven't heard already, the cost of a decent education is continually rising above and beyond what ordinary people can afford.

If you have more than one child, you can expect a financial burden that might almost seem overwhelming.

Did you know that within the next 10 years, the cost of an average education for a bachelor degree is expected to rise to $200,000 per year?

Fortunately there is good news for parents of children that expect to attend college one day.

There are several key strategies you can adopt to ensure that you save enough money for your child or children's education.

Many smart parents know exactly what it takes to afford an education. Here are their strategies:

Start Saving Early – The sooner you start saving the less you will have to save. This is just a fact. Most parents don't start saving until their children are already half way to their college years. You should start saving as soon as you have your baby. For their first birthday present consider opening a savings account for college.

Investigate Primary Sources of Financial Aid – You can virtually finance an entire education using a combination of scholarships financial aid programs and loans. Though some of these aren't as cost effective as other methods (you'll have to pay interest on some loans) they will still help you get through the college years. Most scholarships you don't have to pay back. You should investigate little known scholarship programs.

Set up Tax Deferred Accounts – These include 529 savings plans and educational IRA's which won't count toward your family assets, which the school takes into consideration when calculating how much of a contribution you can make toward your child's education.

Other things you can do include encouraging your children to pursue in state collegiate programs which will save you a fortunate in out of state added expenses.

Remember to prepare financially for your children's education. You have to start planning the moment they are born!

If you don't live in an area that offers solid collegiate programs, consider moving early enough so that your child can still obtain in state benefits in another area by the time they are college age.

Also make a point to start cutting out little ‘extras' such as a latte from Starbucks every morning. Instead, give up your latte a couple of days a week and put that money in your child's savings account.

Time is truly your best friend when it comes to your children's education.

The more time you allow yourself to save, the less money you will have to come up with in a short period of time!

A small investment of $50 a month goes a long way over a period of 18 years. You can save for college and still enjoy life to the fullest!

Article Source : Phoenix University of

About Author

Both Charles Kassotis & Adwina Jackson 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.

Charles Kassotis has sinced written about articles on various topics from Home Appliances, Gifts for loved ones and Pets. Find out more about college opportunities, admissions, and funding when you visit College Retriever.com at ?>. Charles Kassotis's top article generates over 135000 views. to your Favourites.

Adwina Jackson has sinced written about articles on various topics from Pregnancy Trimester, Kids and Teens and Death. Adwina Jackson is a wife and mother of a young boy. She's also the editor of Inspiring Parenting, an online source of valuable parenting information. Please visit