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What are the Best Tips for Saving for College?

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  • Written By: Felicia Dye
  • Edited By: Melissa Wiley
  • Last Modified Date: 26 August 2016
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The best means to save for college depend on several factors, including the age of the individual. Teenagers can begin saving for college by getting jobs while they are studying. It can also be very helpful to ask for cash as gifts. Adults are likely to find that balancing their budgets will reveal funds that can be saved. If those funds are invested, they may grow faster than if they are merely left in a savings account.

Teenagers who will be wholly or partially responsible for their college expenses should begin saving money as soon as possible. One of the best ways to do this is to get a job. While working and studying can definitely involve a great deal of responsibility and sacrifice, many students find working part-time to be very feasible. Furthermore, accumulating money during this period of life can be financially beneficial. Teenagers who opt to get jobs should strongly consider increasing the number of hours that they work during holidays and other breaks from school.

Another excellent way of saving for college is by asking individuals to modify their gifts. There are often occasions such as Christmas and birthdays when individuals are likely to give a student gifts. Instead of accepting material items, a person may request cash for college. It may be helpful to establish an account and allow individuals to make deposits so that they feel more confident that the request is not just a scheme to get money for frivolous purposes.

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Adults who are interested in saving for college, whether for themselves or their children, should begin by assessing their budgets. Outlining all monthly expenditures will provide an overview of the portion of income that is spent on obligations versus the amount that is spent on leisure. Once this is determined, individuals should make a commitment to reducing the amount of money used for non-essential purchases and instead put those funds into an account that is used solely to hold money dedicated for educational costs.

While saving for college, it is wise for a person to consider alternatives to ordinary savings accounts. If the money is invested in items such as stocks or certificates of deposit (CDs), it can grow substantially quicker than it would in a savings account. Another option to consider when saving for individuals who are less than 18 is a Coverdell Education Savings Account (ESA). These accounts allow a limited amount of money to be contributed annually for the sake of a beneficiary. These funds are allowed to grow tax free, and they may be distributed without tax obligations if they are used for qualified educational expenses.

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chrysalis
Post 2

High school students can help save money for college in several ways. They can put any cash gifts into a savings fund, including their graduation gifts to save for college expenses.

High school students can concentrate on scholarships and finding the ones that suit their skill-set. Fastweb.com is a huge scholarship database that students should get used to using regularly to find scholarships in their areas of knowledge and expertise. This can be viewed as a part-time job in that they need to put time and effort into scholarship essays or searches in order to find a good match.

indigowater
Post 1

Parents can begin saving for their children's college fund by investing in a 529 savings plan as early as infancy. These savings are tax-deferred until the child is ready for college and are tax-free if the child does go to college and uses the funds for college expenses.

There are a variety of ways to invest, according to the amount you can afford. These pre-paid savings plans have helped large families with multiple children who may not have been able to afford college costs otherwise.

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