How to Save for College

The cost of a college education is quickly rising at the hand of inflation. Because of the unpredictable state of the US economy, saving for college has been difficult for many American families. Putting money aside for college is an important part of making sure your child is well educated and prepared to enter the job market. Saving for you or your child’s education can be simple with a few extra initiatives.

Speak with your bank about setting aside an automatic withdrawal from your bank account to a separate savings account. In doing so, you will create a simple way to save money each week or month without even thinking about it. The savings account should only be used for your child’s education. Your bank should be able to work with you to set an appropriate amount of savings that you can keep track of. By creating a savings plan you will be able to keep track of how much money you need to save, and how much progress you’ve made along the way.

You can also look into 529 plans sponsored by the US government. The government sponsors a pre-paid tuition program that gives parents the opportunity to purchase college credits towards tuition and room and board ahead of time. Parents can also take advantage of college savings plans that establish an account for a student that can only be used towards a college investment. Both of these plans are backed by the US government and provide a secure way for parents to save for their child’s education.

Families can also earn money for college education through a revolutionary program called Upromise. Through Upromise, parents, relatives and friends can shop at grocery store and drugstore chains and earn points that are deposited into your Upromise account. Those credits turn into dollars that can go towards a college education.

Saving for college may be challenging in uncertain times, but it remains a necessity. Set up a savings program that works for you, and take advantage of additional programs that allow you to save for college easily.

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