Income Ideas: How to Save Up for an Education
With a 4-year college degree pushing the quarter million dollar mark in costs, and a longer-term pursuit such as a masters in aging degrees threatens to touch the million dollar range. Thinking about saving for a college education can keep many parents up at night. As children get older, they too often begin to worry about their chances of getting through a higher educational program without being saddled with a lifetime of debt. The best way to ensure a student can get the education they deserve, and will allow them to pursue the work they dream of is to begin saving early. Here are some creative ways to save money for an education.
Gifts that Last a Lifetime
When birthdays or other milestones roll around, send invites with a request for a gift that will outlast any piece of clothing or plastic toy. Ask guests to donate to the child’s educational fund. Getting $10 for each celebration per guest over the course of a childhood can amount to a lot of help paying for college. It doesn’t mean you deprive them of childhood toys, but certain relatives can help them on their way to the future.
Break Out the Piggy Bank
A child is never too young to learn the advantages of saving for their own future. Teach children to be fiscally responsible, and to save part of the money they earn either from chores around the house, or jobs as they get older, and put it in their educational fund. Not only will this help provide extra money for their college, it teaches children the value of work. Even very young children can get involved by doing chores and yard work. Once your child’s piggy bank is busting at the seams, take them down to the local bank and help them open up their very own savings account, so they can watch the interest accumulate on the money they have saved and add additional money to their college fund.
A Penny Saved Won’t Be Missed
Use money you get back from various incentive programs as money to put toward your child’s education. When you have credit cards with cash back rewards, or save money in other ways, put the savings into the college fund. You would have spent the full amount anyway, so the extra is money saved you won’t miss.
Learning How to Budget
Tightening belts from budgeting money for savings can be a little uncomfortable. Some children may baulk at not getting a new gaming system, or having the largest television on the block. This is a good time to teach them about the costs of living, and how saving a little extra money by not having such extravagant items at their age will give them the money to go to college later.
The Standard Saving Plans
Don’t overlook the standard ways of saving for a college education. Banks offer 529 plans and other custodial types of accounts that are usually the first way people think about for saving for such a big expense. These are very helpful, but too often people think they can’t afford a rigid type of savings plan. Ask your bank about the types of college savings plans that are available. There are many different kinds that can help parents take advantage of great interest rates, and take little to no out of pocket money once the account is begun.
The cost of a college education can be scary, but taking control of the situation and watching the money begin to build will help take the pressure off of young parents. Working together with children as they age, gives them a sense of accomplishment as well, and also teaches them to appreciate their education. It may not be possible to save up enough to pay for a child’s entire college education, but the savings will help keep them from carrying a large debt once they have graduated, and allow them to start life with a sense of accomplishment and hope.
Category: Education
