When it comes to preparing your children for college, the most challenging aspect is trying to scrounge enough money to put away. College can be difficult to afford, especially if you’re a single parent with multiple children. However, it’s far from impossible. You just need to know about saving funds and how you’re going to finance your children’s college education. Here’s how to save for college as a single mom.
Find Ways to Reduce Your Expenses
The first method of saving for college is to find out how you can reduce your monthly expenses. To track how much you’re spending each month, you’ll need to make a budget. Start by writing down each expense you’re currently paying for, like bills and groceries. Go over your monthly income and then subtract it from the total of your expenses. This should give you an idea of how much money you’re left with once all is said and done. Creating this budget is meant to help you see where you can cut corners. If there are any lingering expenses, like a subscription-based service, unused gym memberships, or avoiding carryout/going out to eat multiple times a week, those extra funds will add up quickly and can be put towards your children’s college fund.
Look For Alternative Financing Options
Financing a college education these days has never been easier. As such, there are many options available. One of the greatest options involves scholarships. Scholarships are basically financial rewards given to students with exemplary grades. However, they’re not as hard to acquire as you might think. In today’s society, you can help your kids apply for a scholarship through various programs. If scholarships are out of the question, you can always look into taking out a low-rate private parent loan. This is almost no different than taking out a traditional student loan, but it’s for your kids instead. They can dedicate their focus to their new education while you take care of the payments. Of course, this isn’t one-sided. Taking out this loan could allow you to potentially write off the interest on your taxes.
Open a High-Yield Savings Account
A high-yield savings account works a bit differently than a regular one. You still have the same premise of putting money in an account to use later. But the difference between a high-yield account and a standard account is that it’s possible to earn more savings. The interest rates are the key factor in separating the two. Also, bear in mind that the interest rate you’re provided with depends on the bank you choose to save at. One bank may offer a 0.50 percent interest while another may offer 0.70 percent. We also need to remind you that some banks may require a minimum deposit for security purposes. It’s best to check prior to opening an account. Since we’re talking about paying for your children’s college education, it’s best to start saving while they’re still little. Putting money into this account for 10 or more years will offset the cost of tuition.
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