Mads Chris
4 min readDec 20, 2020

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(7) Tips for saving money for college

College seniors celebrating graduations — Image from Unsplash.com Vasily Kolada

We know paying for college is often a source of anxiety for several families and want to help put your worries to rest. Every bit you are doing maybe a lot better than doing nothing in the least. regardless of how daunting it seems, know that you simply can economize and make a dent in tuition expenses — it’s never too late! and therefore the excellent news is that getting started is the hardest part.

Here are seven helpful tips for a way to save lots of money for college:

1. Invest in a 529 plan:

If you’re a parent and can put money toward your child’s college education, consider investing in a 529 plan. this is a tax-free tuition plan that you can start at any time — all you need is $25. You increase the fund once you can (some people make an annual contribution, often after filing their income taxes). Your savings grow alongside market returns. even if you get a late start, any amount you accrue is money your child won’t need to borrow within the future. Some families can save a lot towards their children’s tuition using 529 plans.

2. Save as a student:

If you’re a student, you ought to start saving money as soon as you begin working. Although it might not look like you’re saving enough, every bit you amass can go toward auxiliary costs (not to be confused with luxury costs). A semester’s worth of books can cost around $600 to $800. If you can avoid borrowing money for books, then that’s one fewer loan you’ll need to pay off later! Working during the school year — whether through the federal work-study program, a regular job on campus, or at a local restaurant or retail store — can help grow your savings and prepare you for paying off your student debt down the road.

3. cut back on unnecessary expenses (whether you’re a parent or a student):

Yes, we all enjoy purchasing a fancy coffee drink now and then (vanilla iced cafe latte with extra whipped cream and a sprinkle of cinnamon, anyone?). But, if that’s an everyday expense, you’re probably spending extra money than you think. Instead, use that money toward college savings.

For example, let’s say you purchase a fancy coffee drink five days every week for a minimum of $4 each day. That totals to $20 every week, which equals $80 a month and $960 a year! That $960 could easily cover a semester’s worth of books. If you save that $960 over four years, as an example, that’s $3,840 saved for school. Imagine how far that $20 every week could take you if you started a 529 plan? Tons further than that fancy coffee drink, that’s needless to say.

4. Apply for private scholarships:

Students can apply for private scholarships, which are typically based on interests, skill levels, unique strengths, or sometimes, personal characteristics (Google “scholarships for redheads”). Fastweb could be a great resource for you to look and apply for these kinds of opportunities. If you’re working, check to see if your company offers scholarships. Or research if you can apply for a scholarship through your bank. There are billions of dollars in funding available through private scholarships. Don’t miss out on free money!

5. Make a household budget and follow it:

Once your child goes to college, attempt to maximize your payment plan rather than borrowing. Create a household budget and ask yourself, “where am I spending too much?” Avoid eating out nightly, pack your lunches, and make coffee at home (no fancy drinks — see #2, above). We’re not telling you to prevent having fun. Make eating out a once-a-week occasion. Treat yourself to a cup of coffee once you need a pick-me-up. But, also, remember your spending and your savings, and how that may affect your college fund.

Man reading while sitting on coins — Image from Unspalsh.com Mathieu Stern

6. Meet with a financial planner, if you’re a parent:

If saving money for your child’s education feels too overwhelming to figure out, sometimes it’s best to seek the expertise of someone within the field. People often postpone visiting with a financial planner because they’re frightened of being judged or are afraid, they’re going to be turned away. Of course, it depends on the company, but most financial planners are eager to help, regardless of your financial situation. they will even establish your 529 plan or work out a unique plan that works best for your lifestyle.

7. File the FAFSA early (for both students and parents):

The Free Application for Federal Student Aid (FAFSA) opens October 1, and we suggest applying as soon as possible. aid, like federal work-study, are distributed on a first-come, first-serve basis.

The FAFSA helps colleges and universities determine your aid decision, which could include scholarships, grants, and loans. the earlier you apply, the earlier you’ll receive a decision, and therefore the sooner you’ll know how much you need to begin saving.

Truly, the key to saving money for college is to begin saving money for college! There are many ways to establish a college fund, but if you would like help determining the best path, don’t hesitate to reach out!

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Mads Chris

Stories and information on financial independence, investments, side hustles, passive income & more!