Are you looking to save money for your child’s college fund? Is the unsure future making you think twice about paying for college on the spot? If so, then join the club. There are literally millions of parents out there that worry the same, and for good reason. Some experts have projected that there will be an annual growth in tuition fees, usually ranging a significant amount too. However, this doesn’t mean you can’t send your kid to college. The safest option open to you, as it stands, is to start saving for a college fund now. Luckily, there are numerous methods through which you can do this; you’ll just have to think them through properly.
Ask your Bank about Prepaid Tuition
To be clear; not every bank accommodates this unique method of payment, and in fact, most try to keep it under wraps. However, you’re still very free to ask about any programs and plans your bank may have when it comes to dealing with tuition early on. Most of the time, these programs should allow you to pay either the exact amount required for tuition, or prepay in installments. Prepaid programs are usually only found in the United States, but other countries around the world provide a similar service.
Financial Aid is Fine
In these times of general economic strife, it can be hard to start saving for anything, let alone for the full cost of college. This is actually why many governments and banks around the world go out of their way to provide financial aid to students. While the interest attached to these loans is a little hefty, most banks allow a large amount of leeway in terms of payment. So, don’t ever be afraid to ask for a little aid. It may help your child get through the toughest 4 years of their life.
These are probably the best kinds of accounts for struggling parents. You see, thanks to the recent passing of certain legislation in the States, 529 accounts can be touched by tax. Whenever you deposit or withdraw from this kind of account, no amount will be charged to you. At the same time, at least 6% of the total amount will be counted towards EFC when applying to colleges that offer financial aid. This advantage is enhanced when the account belongs to a grandparent; none of it will count towards EFC.
Coverdall Educational Savings Accounts
ESA’s are a little stricter than most accounts. You see, it is mandatory that you deposit at least $2000 at the end of each year into the account. However, the advantage that ESA’s bring will have you thinking twice. Taxes never factor in when you start depositing or withdrawing from the account. This comes with the condition that you only do so for educational purposes, however.
This unique payment protocol is a little more complicated than most, but it is one of the more noteworthy programs out there. Some major retailers have taken it upon themselves to help you save for your child’s future. This comes with the condition that you only shop at their many stores. On the bright side; UPromise doesn’t raise the cost of their products when you subscribe to this service. At the same time, they also allow you to send credit and debit card offers to your friends. If you managed to hook some new people to join up, each purchase they make can contribute to your savings account. UPromise, however, only works with a few retailers, so researching which shops offer it is a must.
Educational Tax Credits
Using tax credits is probably one of the more complicated saving methods because it requires you to dive into a lot of paperwork. You’ll have to look through IRS.gov to find these different deductibles. However, subscribing to the service is quite easy once you find the right kind of scholarship or grant for your child.
So there you have some of the best means through which you can save for your kid’s future. However, if you’re still young, try and remember that budgeting now will be more effective. Saving even $100 each month can help a lot over the course of 18 years, so don’t ever rule that option out.
Featured and 1st image by Theeradech Sanin / freedigitalphotos.net
2nd image by jesadaphorn / freedigitialphotos.net
3rd image by Stuart Miles / freedigitalphotos.net