How to Save Money for Your Kids for College

Save for College

The secret to saving money is time. Starting a savings plan for your kids college fund can be a smart move. There are several ways to save money for your child's future.

Instructions

1. The secret to saving money is time. Lets say you begin saving money for your kids college from your child's birth until age 18. If you invest in a savings account gaining a 2% interest yield, which many online savings accounts are offering right now, you could have $100,000.00 by saving $385.00 a month. You could save $50,000.00 by saving $193.00 a month.

2. Use an investment technique called CD laddering. CD laddering is moving money and interest gained from a CD when it matures into another CD and so on. The idea is the more money you invest in a CD and the longer term of a CD will gain you a better interest yield than a typical savings account.

3. Look into the 529 plan offered by individual states. The 529 plan allows parents to save money for their kids college expense with tax benefits much like an IRA. Each state has the 529 plan but the plan is different from state to state.

4. Sign up for Upromise. Upromise links their coupons to your registered grocery card. The money saved from the coupons you use go into a savings account for your kids college. They also have savings opportunities for 1% to 25% at restaurants and online retailers. You can link your family and friends to your account to accumulate even a bigger savings.

5. Even if your child is older it is still not too late to start a savings for your kids college fund.

Resources

• Link to Upromise
• Info on the 529 plan