Though it is hard to predict exactly what the cost of your child’s college education will be, you can commit now to saving something—anything—to help pay for it. The key is to make a plan and stick with it. Even the most modest amount of money saved regularly and consistently can grow into an important source of financial aid for school. Plus, setting up a college saving program shows your child that you expect him or her to go to college and that you believe college student financial aid is a goal worth working toward.
Why twenty-five dollars? Many 529 college savings plans allow people to begin investing with only twenty-five dollars a month, so that’s a good starting place. Where will that twenty-five dollars come from? Here are some ideas.
Change You Can Believe In
Start a coin jar and ask everyone in the family to empty their pockets and/or coin purses into it at the end of the day (twenty-five dollars a month is about eighty-three cents a day). One way to make sure you will have coins to contribute is always pay with paper money and never use change. That way you will get change back from every transaction.
Bank on Coupon Savings
When you use coupons to reduce your grocery bill, don’t just congratulate yourself on the money you saved. Take that amount (it’s usually listed at the end of the grocery bill) and put it aside. Coupon money will add up quickly.
Create a Game
As a family, come up with ideas for making saving fun. For instance, every time a letter from a college arrives, toss a dollar into the kitty. When the college is on your child’s dream list, increase the amount to five dollars. When your child brings home good grades on a report card, don’t pay him or her for every A or B. Pay the college fund instead.
Skip the Vending Machines
If you typically hit the vending machine for an afternoon soda or candy bar, start bringing those treats from home. Vending machine soft drinks can cost a dollar or more; a twelve-pack of soda for four dollars works out to thirty-three cents a can. Ditto for candy bars, chips, and cookies. Pack your own and earmark the savings for college.
Rethink Your Lunch Plans
If you eat lunch out every day, cut back even one day to save an average of seven dollars a week. When you do eat out, order water instead of soda. You’ll save nearly two dollars.
Get to Know Your Library
Libraries have more than books. You can borrow videos, DVDs, even video games for a lot less money than you’d spend at the corner video store. Most libraries also carry magazines; if they carry your favorite, you can cancel your subscription and send that money to the college fund.
Review Your Bills
Are you paying for things you don’t use? Do you need call waiting and caller ID on your phone? Do you need your phone? (Many people are giving up their land lines and making their cell phone their main line.) Are you paying for premium cable channels that you never watch? Will bundling your phone and Internet cost you less than paying for them separately? Is your cell phone plan the most cost effective choice for your family? Can you read the daily newspaper online instead of paying for a subscription? Take the time to ask questions like these, and crunch the numbers to discover where a few extras dollars may be hiding each month.
Beat the Budget
If you budgeted one hundred fifty dollars for groceries and you spent only one hundred forty-six, put that four dollar savings into the college fund. If you figured it would take forty dollars to fill up the car and it only took thirty-three dollars, put that seven dollars in the college fund.
Share Your Good Fortune
When you receive unexpected money, such as a rebate, refund, or bonus, split it between yourself and the college fund. Encourage your child to do the same with birthday and holiday money.
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Do an online search for “money saving tips” and explore Web sites like these:
The Simple Dollar
The Dollar Stretcher
Better Budgeting
Money-Saving Mom