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3 Creative Ways to Save Money For Your Childs’ College Education.

 

By Hamadi Jett. July 30th

 

The notion of college can be a fundamental desire for your child. As college rates skyrocket and college enrollment plunges, you may question if the cost of education is starting to outweigh its perceived benefits. This article can help put those looming worries to rest.

Without further ado, here are three creative ways to help save money for your child’s most formative years!  

One way – Crowdfunding

When we think of money, we do so personally, and that doesn’t necessarily have to be. People will help us invest in our dreams, too – provided we’re speaking to the right ones. When you think about saving for your child’s college education, think about how others can contribute as well. 

Instead of giving another plastic toy, your family and friends can help add to the growing college fund on birthdays and holidays annually. Multiply that outside investment by 18 years, and now we’ve stumbled upon something magical!

Second way – Community to University

Admittedly, this isn’t the sexiest way to experience college, but it may be the most wholesome. As you and I know, movies and TV played a big role in shaping our perception of the so-called college life. You go to school to get an education – amongst other things; you exit school with an education, amongst other things. Unfortunately, those other things, are numbered at your local community college (okay, almost but not entirely so). 

There are still ways your child can live the romanticized college life without taking from the forbidden reserve fund. 

Introducing, transfer programs, an affordable college plan that still lends kids the benefit of boasting a top university’s name on their resume upon graduation. Of course, doing two years locally and then two years at a university requires prior research for which four-year schools are eligible for transfer. But the savings can be indescribable compared to paying out of pocket for all four university years! 

Third way – Prepaid Tuition

The state or the federal government can also be used to make future college tuition payments painless. If you’re unfamiliar, government entities can help take the burden of paying for college off the parents’ shoulders through college savings plans like the National Private College 529 Plan. Essentially, such a plan allows parents to set aside tuition payments in a private account while making use of the cost of college today. According to researchers at FinAid, college tuition tends to increase by 8% per year on average. When you stop to factor in inflation for the next decade or so, this can make future tuition rates look grotesque. 

Why send your child off to college when future tuition rates will make it so it’s only affordable to the top 10%?

Prepaid tuition plans alleviate the financial pressure, given that such plans offer a fixed rate despite inflation’s yearly increase. In addition, depending on if you choose a state plan or a national plan, you may be eligible to take a state income tax deduction for the money you contribute to the plan. Sounding a bit more possible now? There’s more…

Bonus way – Good ol’ stocks

It goes without saying that we’re promoters of getting children started in stocks as early as possible, so of course, we’re going to plug our own brand Stuff&Stock as a stock starting place for young people. But more than anything, we hope this post was able to relieve the shoulder stress that comes along with budgeting for a child’s future. Know that there are easier ways to prepare for the eventual debt, and much of the heavy lifting can be accomplished before the first batch of college applications get to sending. 

For more helpful investment articles 

And until next time, thank you for reading this week’s blog! 

 

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