It’s tough to save up enough money for college! To help you save up the thousands of dollars, or even hundreds of thousands of dollars, you’re going to need to put forward to send someone (or yourself) through college, check out these 10 tips.
Why Send Someone to College?
Is college even worth it anymore? Well, that depends on what you plan to use a degree for. Some fields require college degrees, so saving up to send someone to university to receive a higher education can help them earn significantly more income over the course of their life than they could otherwise access.
How Much Do You Need?
The first thing you’ll want to know is how much, on average, you’ll need to save up in order to send someone through college. There are a lot of factors here, including how far in the future they’ll be going to school and what kind of school they plan to attend.
Make a Budget
Once you know about how much you’re going to need to save to get someone through college, you’ll want to craft a budget. Account for each dollar you intend to save and earmark that out of your income. Once you have a plan in black and white it’ll be easier to make it a reality!
Save Consistently
When it comes to saving, consistency is key. Make sure you’re donating to a savings account with each and every paycheck you earn. It doesn’t matter if the amount is small as long as you’re contributing on a set schedule and every time you get paid. Those consistent contributions will really add up over time.
What Kind of Savings?
Ideally, you’re not going to be saving by stashing cash in a mattress. Remember, consistent inflation over time makes paper money a poor store of value. You’d honestly be better off buying gold than hoarding cash—but we still don’t recommend this avenue of saving, either.
Savings Account
The most straightforward way to save would be to simply drop your college fund into a savings account. These simple accounts earn a flat amount of money back as interest, as the bank holding your funds invests them and gives you access to some of the proceeds from the investments. However, this isn’t your only option.
529 Plans
There are dedicated college savings plans like 529 plans that offer some tax incentives for using the money included in them for sending people to university. These can help you save some significant money on your college tax bills! The rules for various 529s vary based on your state and other factors, but, generally speaking, they’re great options for parents of future college students.
Sending Yourself
If you’re not planning to save over a long period of time for a child, but instead want to save to send yourself to college, you’re looking at a slightly tougher task. But the big thing to remember is that saving up even a bit of money can help save you a ton on student loans in the long run.
Read More: Don’t Forget These 8 Essential Items Before Going Off to College
Side Hustle
One way to help bulk up your savings account to cover college expenses could be to get a side hustle, like driving for a ride sharing app or making mobile deliveries. These jobs aren’t glamorous, but they can help you actively earn a few extra bucks to put right back into your savings towards your education.
Read More: 10 Creative Ways to Start an Emergency Fund
Visualize Success
It might seem like a college education is a faraway prospect but remember that every journey starts with a single step. Visualize your success on the horizon and start taking actions that get you closer and you’ll have reached your goal before you even know it!
Read More: 10 Money Habits That Millionaires Stick To
