College is expensive. According to the College Board of a study done in 2016-2017 tuition and fees at a public four-year college or university cost around $9,650 a year. If going out of state that cost rises to around $25,000 and if a private school is chosen than around $33,000 or higher. Remember that is just the tuition costs; it does not include room and board. Many American families have two or three children. So how do we save to put our kids through college without giving up everything? According to USA Today here are the tips to managing and preparing to do just that.
Set Limits and Raise Responsible Children
If you can afford to take on all the expenses of college for your child that is nice, however, it may work better to have a deal with your children. Perhaps you, the parent will pay for the tuition and have your child pay for their room and board. If your kids know how to manage their own money they will be better off in the future anyway. If you make this agreement early on than your children can begin saving ahead of time, or they will plan to work through school.
Break your Savings Goal into Manageable Chunks
Start by taking things slowly. Plan for one year at a time per child. It will seem a lot more manageable if done this way. Once you reach this new goal than set the next one and save for the second year of college. It will feel less stressful this way.
Take Advantage of Free Money
Some companies offer tuition reimbursement benefits. Find out if companies you work for have something like this and take advantage of it. Another way is to look for scholarships and other forms of grants and aid. There are all kinds out there some with little amounts and some with large. It never hurts to apply. Search for scholarships on the internet, see if the companies you work for offer any, and have your children take advantage of the high school. Most high schools have counselors there who are experts at finding scholarships just right for each specific student if they are asked.
Increase Earning Potential and Live Frugally
Don’t sacrifice family life, but if there are offers for overtime and you can do it then do. Save that overtime paycheck for college fund money. And live a more frugal lifestyle. This can mean many different things for each particular family. But ask yourself if you need the best of the best or if you would rather put your child through college. One example may be to not buy a car brand new, but instead just focus on having a nice reliable vehicle. Eat at home more often than eating out. Whatever you can do to keep your wealth growing so you can save extra than do it.
A few last minute tips are maybe considering setting up a 529 plan. This is a tax-advantaged college savings plan. Consider encouraging others to contribute. Family and friends who will be buying your kids gifts anyways to instead contribute to their college fund. There is no reason you cannot be successful if you put in the effort.