Whatever path your child takes to continue education after high school, getting started on saving early can make a big difference. Even if you understand the importance of saving for your child’s future education, it can be a challenge to fit saving for college into your budget or routine. Check out some of these tips and tricks to become a more effective saver.
- Enroll in Imagine Early Scholarships. To participate, you will complete a Participation Agreement with the Community Foundation, and enroll in a CollegeChoice 529 Direct savings account.
- Track the value of your Community Foundation Imagine Early Scholarship Fund and your CollegeChoice Direct 529 savings account. Take advantage of all student- and parent-driven scholarship opportunities and all savings match incentives available in grades 4-8. When you and your child watch your money grow, both of you will feel hopeful and motivated about the future.
- Start early. Putting off saving for your child’s college means you’ll miss out on interest and growth on your money.
- Make a savings plan that’s right for your family. Your local bank is a great resource where you can meet with experts who can talk with you about making a plan.
- Family conversations about money: Most of us grew up in houses where parents and kids didn’t talk about money together — but that meant missing an opportunity to help your child learn about money and how it works!
- Write down your savings goals on a calendar with your child. The benefits are twofold – you’re more likely to save if you write down your goal, and your child will see the commitment you’re making towards his or her future.
- Make saving for college a budget item. Figure saving for college into your regular budget like paying for household bills or saving for retirement.
- Evaluate your expenditures. Look for areas in your budget where you can cut costs and redirect those funds into college savings.
- Make your savings goal-oriented. Set savings goals with a definitive timeline and monetary goals. It’s easier to meet a goal of saving $500 a year or $25 a month than the broader goal of “saving.”
- Set it and forget it. Set up automatic transfers from your paycheck into your college savings account. Make it easy to contribute by setting up an automatic transfer…and forgetting it.
- Redirect unscheduled additions to your income directly into savings. This could include raises, tax refunds, or bonuses.
- Use freed-up money. If a regular expenditure ends (such as daycare or car loan payments), reassign that extra money in your budget directly to savings, before you have a chance to get used to the extra spending money.
- Save on schedule. Mark your calendar to contribute every major holiday and birthdays.
- Track your spending and saving. Use a notebook, spreadsheet, or smartphone app. Making a budget helps manage money, whether you have a little or a lot to work with.
- Avoid impulse purchases. Wait a day to buy purchases. If you still want the purchase, you can go back and get it.
- Find additional ways to save. Save money by bringing your lunch, borrowing books and movies from the library rather than renting them, carpooling, using coupons, or shopping sales. Put any money you save into your college savings account.
- Make saving a group effort. Involve your family and friends by encouraging contributions to your child’s college savings account for birthdays, holidays, or other significant milestones.
