Saving for College: What You Can Do
Saving for college has become increasingly important with the rise in education costs. If you are trying to save money for your own college education, there are several things that you could do. Here are a few things to consider about what you can do to save money for college.
In order to save money for college, you are first going to have to come up with some money. You should consider getting a part-time job while you are still in school in order to save for college. If you cannot get a job during the school year, you should be able to at least work during the summer. There are many different part-time jobs that you could consider. Many teens will perform yard work, start a babysitting service, or get a job at a restaurant. Regardless of where you decide to work, the important thing is that you generate some sort of income. Otherwise, none of the other strategies will help you.
Save Your Money
After you have generated some money, the second step is to save it. During your teenage years, you will inevitably need some money to get by. By no means should you forgo having fun during high school and save every penny that you make. However, the more money that you can save during this stage, the better off you will be later on. Try to come up with a system as to how much money you will save out of each paycheck. During this time, you should not have many bills to worry about. You most likely have free room and board and not many other expenses to speak of. You most likely have to pay for gas and any other car related expenses. However, this provides you with a great opportunity to save your money for college. Come up with a percentage that you will set aside for college funds out of each individual paycheck.
College Savings Methods
Once you have some money to work with, you should consider utilizing a college savings strategy to maximize the amount of money that you will have available for college. You could potentially open a college savings plan that allows you to invest your savings into the financial markets. By using a Coverdell ESA or College 529 savings plan, you will be able to make money through investing on a tax-free basis. When it comes time for college, you will not have to worry about any of the money that you have made going to the government.
Many people will also invest their money into government savings bonds. This provides you with another tax-free way to earn interest on the money that you are saving for college.
While you should do as much as you can to enjoy your self when you are young, starting early with your college savings plan can help tremendously. You have a limited amount time before you reach college age and you need to take advantage of every opportunity that you can get to save.