Saving for college
- Thread starter Miller
- Start date
Victor Leigh
New Member
I remember there is such a thing as an endowment insurance policy. It works somewhat like a saving scheme with the added advantage of covering your children's college needs should you be incapacitated. That's one thing you can do.
Another thing that you can try is to start some activity that would bring in some side income. Of course, it will take some of your time but do it keeping in mind that you are putting aside something for your children's future.
You can make this extra income in a number of ways. Direct sales comes readily to mind. It can be lucrative if you work at it consistently. Making money online is another possibility. Personally I would go for the latter because of the potential.
Please feel free to ask if you need any help with making money online.
Another thing that you can try is to start some activity that would bring in some side income. Of course, it will take some of your time but do it keeping in mind that you are putting aside something for your children's future.
You can make this extra income in a number of ways. Direct sales comes readily to mind. It can be lucrative if you work at it consistently. Making money online is another possibility. Personally I would go for the latter because of the potential.
Please feel free to ask if you need any help with making money online.
I may be an oddball but I don't do anything for my kids. I tell them their job is to get good grades so they can get grants and scholarships for school. Then they'll have to make up the difference if there is any. I figure it'll mean more if they have some ownership in financing school.
Try to save investments instead of money. Money doesn't appreciate but investments do. Granted, your investment might not be as safe as you'd like, unless you put it in a bank which doesn't really count as interest in my book. This way, what small amount of budget you may have for now will not remain small in a decade. Try looking at some mutual funds or even some land that you can invest on for your kids. That is what my dad did, and we're doing the same for the kids in my family now. Hope this helps and good luck. 
I agree with this 100%. I am not saving for my kids college education, that is for them to worry about. I help them understand about scholarships, and the importance of good grades, that is what my job is. Not to save tens of thousands of dollars to send them to school, just to party.
If they don't receive scholarships, I'll teach them that college is really not important anyways. A degree is a piece of paper. It can help you get a job, but it's not a must. Be skilled at what you want to do, and you WILL find work. You don't need a piece of paper that tells you what you can or can't do, just go out and do it.
FrankSinatra
New Member
I would say to contact a financial adviser and discuss your plan with them. They can discuss setting up a 529 plan so you can invest a little at a time from each paycheck and then let it grow with the market.
Mr. Rogers
New Member
Good luck to you on trying to figure this out. Every time I put money away something breaks or a big bill comes in and we have to take money from the savings to pay that with the 'savings'. I haven't been able to make this work yet and I've been a dad for ten years.
College at a state school is estimated to cost $40,000 year by the time my kids are old enough. With the interest rates so low and wages stagnant I think I am better served saving for myself because if I am in a good position financially then I can contribute more of my hopefully larger income later in life without losing money to inflation since 1% interest on savings a savings account is actually losing money every year in a sense. You earn 1% on your saved money yet your health care goes up 5%, food 5%, utilities 3% and your annual raise is only 3%. Id rather have some fun now and put in some extra hours when the time comes to help pay off the loans IF they graduate.
FrankSinatra
New Member
Unfortunately this is a highly flawed system of thinking and will be the reason your kids end up with $50,000 in student loans to pay for college. You are considering the only option is to put it in a savings account. A savings account is meant to put money aside for a reason in the more near-future. You need to invest this money now and let it grow.
Putting it in a 529 or even a CD with higher interest and then just keep letting it compound would be a much better option than blowing your load now and then playing catch up later.
I now put $20/week in a bank account (my kids are currently 2 and 3 years old). I hope I will raise some college funds until then and if the taxes exceed what I raise until then it will be more easier to complete the money that they need.
FrankSinatra
New Member
529 will work in conjunction with financial aid but shouldn't affect it too much in regards to still receiving awards. Some awards are based on financials so those may be hurt but it won't affect any grants or scholarships they may be receiving.
One of the big things is that it has to be used for school or else there is a 10% tax penalty. Honestly, just call a company that offers 529 plans and ask questions. Even if you have no intention of purchasing right now, but let the CS reps tell you about it and answer any questions you will have.