Education is getting expensive as time goes by, and saving for your child’s college seems impossible to do so these days. But don’t worry! With proper planning and wise saving, you may be able to help fill up your child’s college fund jar in no time. In fact, there are a lot of ways to save money that maybe you don’t even know about. Let’s take a look at these money saving tips down below.
Have a Savings Account
- One of the easiest and most basic way to save cash is by opening a bank savings account. Add money on your savings account regularly and never touch it until your kid is already in college.
Automatic Paycheck Withdrawals
- Some employers tend to split your check towards several different accounts. This is ideal because you never have to see or even move your money from one account to another. This also happens automatically so you’ll be used with living without that kind of amount every month. What’s best is that you can increase this amount as your income increases year by year.
Avail for Investment Savings Plans
- There are lots of investment savings plans out there such as the 529 plan or Roth IRA plan for you to choose from. See these as 401k-type plans for your child’s college savings.
- Take Advantage of Tax Refunds
- It’s understandable that you’ll be having a hard time to save for your kids because of the rising cost of almost everything in the market. As an alternative, you can invest that extra money you received from your tax return to save. Investing on it for once a year is already enough and can add up from time to time until your kids will go to college.
Open an Education Savings Account
- An education savings account is quite similar to 529 and Roth IRA plans. The only difference is they have a limit of $2,000 per year. You can only add money into it if your kid is already 18 years old.
- Teach Your Kids to Help Save Money
- If your child had a job, teach them to save money by explaining that a portion of their earnings will go into their college savings no matter what kind of plan you applied for it. This will teach them that education is also important as well as learning how to budget their cash.
Start Early as Possible
- Make sure to start as early as possible so that you can save more until your kids turn 18. You can always add a little more into the savings if you had wads of cash with you.
Set Realistic Savings Expectations
- Don’t go too much over the top when it comes to saving money. You need to be realistic in some ways especially when we’re talking about financial stuff. If you can’t save $200 a month, then don’t go for it. $20 to $50 dollars will do and that’s perfectly fine. You need to realize that it’s ok to start slow and there’s still other important stuff you need to spend on.
Experiment and Combine
- With all the ideas and ways of saving cash stated above, you can combine and mix all of these and pick which one is effective for you.