September is National College Savings Month
To help families plan and prepare for the future, the U.S. Congress has declared the month of September National College Savings Month.
According to the Bureau of Labor Statistics, college costs are increasing at a rate of 8 percent per year. Children today will face college costs that are three to four times what they cost now.
The goal is to promote the idea that it is never too early to start saving for college.
- Keep the change savings - Check with your bank about special and unique savings programs. I have a Bank of America account that rounds up all my checkcard transactions and rolls over the change to my savings account automatically. Out of Sight, Out of Mind is the concept.
- Automatic Savings Deposit - Again another Out of Sight, Out of Mind concept. Set-up your direct deposits from your job with a savings deposit. Even if its only $50 per check it will add up in the long run.
- Create a Monthly Budget - Its real simple, just download tons of free online templates out there for a budget. Just download a budget, fill it out and have it posted to remind you of your expenses.
- Save with your child. Involve your children in the savings process. Since it involves their education, it 's good opportunity to educate them about the benefits of saving. You might even set up a matching fund type of program to help kick start them in the right sense of direction. They will learn to appreciate, so encouraging it early will help establish good habits. You'll also find that acting as a role model for your children will make it easier for you to save as well.
- Ask help from relatives Grandparents have been statistically known to help with grand kids college expenses. There are even investment plans and savings account specifically made for relatives to help getting tax free and deferred.
- 529 investment plans are tax advantaged plans designed to pay for qualified higher education expenses. Distributions used for qualified education expenses are federal income tax free. Real simple are the 529 Savings account that you can freely deposit money into tax free
- Savings bonds are a safe way to save for education. When you buy EE and Series I bonds, some or all of the interest you earn is tax-free if used for qualified education expenses.
- Text Books can be very expensive and a way to get around that is buying used text books online like Amazon, Ebay or etc. Just make sure to compare accordingly and find the best price out there.
- Computers are the same with text books, you can buy used laptops online or even custom build a pc that is usually way cheaper than buying brand new ones.
- Clothes, finally to stay on target with buying used, encourage your kids to sell their used clothes on craigslist often, I remember in college that was my only way to survive sometimes and trust me college kids love the retro, thrift look anyways :)
"All 10 Tips are Tips from Justin Williams in Virginia Beach, please do not copy without permission"
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