1. Establish a clearly defined savings goal.
2. Set a household budget – and stick to it.
3. Save early and often.
4. Increase the amount you save each year.
5. Utilize the tax benefits of saving through a 529 program (like nowU).
6. Calculate. Use a college savings calculator to determine how much you need to save for your child’s education. nowU offers one at www.nowU529.com.
7. Use the one-third rule. That is, you should expect to save one third of the expected college costs, pay one third from then-current income and partial scholarships or grants during the college years, and borrow one third using a combination of parent and student loans.
8. Tuition rates will increase at about twice the general inflation rate, so the more you can save now, the more you will be prepared for higher costs in the years to come.
9. Try to save at least 10% of your paycheck (per child), starting the day the child is born.
10. Don’t assume you will receive much, if any, in scholarships or grants. Base your savings on paying at least the full cost of tuition at a public college in your state.
11. Use automatic payroll deduction so that you don’t even have to think about saving.
12. Find ways for your relatives to contribute to your child’s education as well (during birthdays, holidays, etc.)
13. Cut down on extraneous living expenses.
14. Redirect some of your savings into your college savings account.
15. Involve your children in college savings discussions as a way of teaching them how to save.
16. Get the rest of your finances in shape. You don’t want to be racking up credit card debt while you’re saving for college. A good balance will help keep your household financially sound.
17. If you’re not sure how/where to save, consult a financial planner for professional advice.
18. Utilize rewards programs like Upromise and SAGE Rewards to help maximize your savings dollars. Check out www.Upromise.com and www.sagescholars.com for more information.
19. Don’t rely on savings as the only way to pay for your child’s education. Apply for scholarships, financial aid and other assistance.
20. Save your pennies. It’s estimated that a penny jar can save an average household anywhere from $100-$150 a year, money that can be directly deposited into your college savings.
21. Cut out one bistro coffee a day, and redirect that money toward your college savings account. At an estimated $3/day, you can save $1,095/year toward your child’s education.
22. Cut back on cable by switching to a lower monthly service or looking for special promotions that can save you money. Take the extra cash and invest it in your child’s education.
23. Limit out-of-network ATM visits (and those pesky service charges) by taking out more cash each time from your home bank. You’ll have more money to save for your child’s education.
24. Pack your lunch. It’s estimated you can save more than $900/year – money you can redirect into college savings.
25. As your child grows, involve them in their own college savings efforts by suggesting a portion of their allowance or money they receive for odd jobs be added to their education account.
26. Carpool. Saving one-quarter of a tank of gas a week by carpooling can save you almost $1,000/year that can be used toward college savings.
27. Take the time to be on the lookout for coupons you can use in your grocery and clothes shopping. Look at the bottom of your receipt to see how much you’ve saved and deposit that amount into your child’s college savings account.
28. Reduce, reuse, and recycle. It’s not only good for the environment, but it will leave you with some extra cash to boost your college savings account.
29. Lower the temperature on your home's water heater to 120 degrees from the standard factory setting that could be closer to 140 degrees - on an average home, this can save you nearly $50/year, enough for one monthly deposit into your savings account.
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College Savings Tips