How to Avoid Going Back Broke While Saving For College

Avoid Going Back Broke While Saving For College

Saving up for college might seem impossible, but it can be done. No matter what your current financial situation might be, there are many ways that you can start saving up for college without going broke.

Even if you’ve already considered the current tuition rates and feel like there’s no way you can afford to go to school, there are a number of steps you can take to fund your college education.

Always apply for financial aid

Even if you don’t think that you’ll qualify for a grant, make sure that you apply for financial aid.

Boston.com points out that 60% of undergraduates receive some sort of financial aid. You should apply for financial aid each year.

In addition to federal grants, you may be eligible to receive certain scholarships that will help cover your tuition expenses.

Consider investment plans

An Arizona college investment plan could be exactly what you need to start saving.

College Savings Bank – Phoenix, for example, offers several CDs and even a high yield savings account to help young adults and parents start saving up for college.

With a college investment plan or savings account, you’ll be saving specifically for college and will typically receive a higher return on your investment than with a regular savings account.

Talk with a school financial counselor

Before you enroll at a college, talk with a financial counselor or advisor to find out exactly what your payment options are.

Even if you don’t receive any grants or scholarships, your university may offer a number of payment plans or options.

Some universities allow students to make monthly payments instead of taking out a hefty student loan.

Talk to your university to find out if this is something that you can do.

Start early

By far the best way to start saving for college without going broke is to begin saving as early as possible.

While many students can’t start saving until they’re teenagers or young adults, the sooner you begin to save, the more money you’ll have accumulated when it’s time to go to college.

Remember that even if you can only put away twenty dollars per paycheck, it’s a start.

Reduce your expenses

While you probably realize that it’s a good idea to reduce your personal expenses in order to save up, you might not know exactly what this looks like.

For many families and young adults, saving for college can include simple steps like using coupons, asking companies for discounts on products, or opting for a cheaper phone plan.

There are many ways that you can gradually cut down on your personal expenses. Even if you manage to reduce your costs by fifty dollars a month, that’s an additional $600 per year you can put into your college savings fund.

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