Raising kids has a high price tag, even before you pile on the expenses of sending them to college. A higher education is perhaps the most expensive part of raising kids. Yes, they can still go to college without your financial assistance, but starting a savings plan upon the birth of your child enables you to help with tuition and books when the time comes. With the many ways of saving for college, you're sure to find the best one for your family and financial situation.
Invest money in stocks. This is a good way to keep your education savings even with the pace of inflation, according to CNN Money. Choose options with a good three to five year track record but with low expenses. Make sure you can cash in on your investments easily when college nears, so the money is handy when you need it.
Open a college savings account. This is ideal for people who are nervous about using stocks and bonds and for parents who don't have a lot of money to invest initially. Set up an account that discourages frequent transfers and have a certain amount of your paycheck automatically deposited into the account. A 529 college savings plan is ideal because it's tax-free, and your child can use the money at most universities.
Use credit card rewards to fund college. You can link your account to UPromise and earn rewards when shopping at participating stores. Redeem the funds any time you want and have them put directly into a college savings account. You can also transfer the cash-back rewards from any credit card into the account.
Hold a fundraiser. Edulender, an online college savings program, allows you to set up an account to which friends and family or even strangers can donate money. If you start a fundraiser early enough, your child might finish college without debt.
Ask for money instead of gifts. If your baby has everything he needs, and he's still too young to care about birthday gifts, ask for donations to put toward his college fund. Friends and family can contribute to the cause at birthdays or holidays. If your older child gets cash gifts, help him put some into his college account and then let him spend the rest on toys or other items.
- Jupiterimages/Comstock/Getty Images