As a parent, we know how important it is to be able to have a fund for further heavy expenses, such as your kids having unexpected diseases or a big family vacation. Finding the best way to pay for college has always been parents' dilemma.
The key is to start saving as soon as possible, but if you’re stuck in a financially tough situation and unable to think of a creative way to save up for your kid’s future college expenses, don’t worry. Here are some unexpected yet amazing 5 ideas you can apply now, which will help you get on track and save money for them to continue their education.
1. Cut the Cord Now
Reduce your expenses by removing unnecessary cable tv expenditures and embracing streaming tv. There are streaming tv services on which you don’t have to pay a single cent for accessing their content. The only thing is because of these services running on your internet connection, you need to install a VPN for protecting yourself from potential hacks and spying. Here is how to install a VPN for your streaming service.
2. Apply for Government Help
There are many advantages from getting help in terms of taxes. One of them is to apply for a 529 plan, which is a federal or state plan that is applied for in order to help you out by setting aside funds in case your son or daughter wants to apply to any national college across the nation.
The best part is that a 529 plan in some states can give you access to exclusive tax benefits that would be impossible to get otherwise.
3. Check for Tuition
If you are already saving up with a short-term investment plan and you get frustrated because of the almost non-existent return earned on your investment, applying for a prepaid tuition plan can be one of your life savers, as not only the inflation rate is higher but also in some states, a tax or credit deduction is given to increase savings.
4. Check for Community College
If college is right at the corner waiting for you, you can buy extra time by sending your kid to a local community college for 2 years first, so you can save up for normal college expenses. You can even save tons of money if you search for local options that enables your kid to complete his or her education while living with you.
5. Get a Life Insurance
This is not an option recommended for older parents and only needs to be used in case of real emergency. That said, if you already have some funds in there you can use them, but first try to talk to a financial planner as he or she will give you advice on which other options might be available for you.
