If you have children, one of your biggest concerns may be figuring out how to save for college. College is not cheap, so having a savings strategy in place is key to having a healthy college fund. Here are some ideas you can implement that will help ease the college tuition burden:
Start Saving Now
One of the best ways to begin saving for college for your children is to start as soon as possible. Ideally, you should plan to start saving during your child’s first year. This will give you 18 years to save money for tuition. One great way to begin saving for school is to open a 529-college savings plan. These plans are offered in every state with differing regulations in each state. They are savings accounts with really good tax breaks for investing. You can then use the money to help pay for college tuition. The plans are not free, but they do allow you to save a great deal of cash for college.
If you do not want to use a 529, consider opening a money market account or trust and deposit money on a monthly basis. The key is to begin early. You may want to work with a financial planner to determine how much you will need to deposit each month in order to best maximize your savings.
Automate Your Savings
If you have trouble with physically depositing money into your college account, you may want to consider automating your savings. The easiest way to do this is to set up an automatic draft from your checking account into your desired savings account. You can customize your automated deposits based on your pay period. For instance, if you are paid twice monthly, set up two separate deposits for each pay period so that you won’t be hit with one large withdrawal. This will allow you to save more easily without straining your budget.
Save Gifts of Cash
If your child receives gifts of cash for holidays or birthdays, be sure to add it to the college fund. In fact, you may want to request that they receive money for college as a gift. The gift amounts do not have to be large, but every little bit will help build up that college account.
Another way to help save for college is to join iRazoo. iRazoo is a great platform that allows users to perform different actions that earn points for cash in the form of gift cards. You will be able to answer surveys, play games, watch videos, and complete other activities that will earn you points. You can then exchange those points for great gift cards in various denominations. There are gift cards available from the world’s best retailers as well as PayPal. You can either save the money in a PayPal account, or you can use store gift cards to pay for college expenses. There is no limit to how much you can earn with iRazoo, so get started today!
Saving for college for your children can seem like a daunting task. However, getting started early is key. If you need additional ways to help you save money for college as well as goal setting and budgeting, be sure to visit the iRazoo blog for a lot of tips and ideas.