When it comes to saving for college, many of us are falling a little short of our savings goals. So, if you're looking for tips on how to save money for college, you've come to the right place.
With college costs increasing at an alarming rate each year, it is no wonder that so many are drowning in student loan debt.
Sadly, the only remedy here is to have saved up your money before going to college. That's why it is so important to learn how to save for college early.
And I mean, if you can start when you are 5, do it!
But, it is what it is. And if you are just starting now, well, it's better late than never! So without further ado, let's take a look at these 10 simple tips for how to save money for college the right way.
How to Save Money For College
1. Start Saving Early
This may come as a no-brainer but do you know how many of us intend to start saving but never do? Then before we know it, it's time to go to college and we have $0 in the bank.
It's easy to get swept up in life especially in high school. But if you are serious about going to college, you need to really commit to saving for it. And, we all know, the earlier you start, the better.
So, as soon as you've made up your mind to start saving for college, start saving for college. Grab a piggy bank, set up a separate account at your bank, or buy a fancy excel program to help you keep track of your savings.
You might also want to automate your savings that way you ensure that you are saving each and every month.
But, to help with your savings efforts, you are going to need a savings goal. And for that you need this next tip: know your college costs.
2. Know Your College Costs
When it comes to saving money for college, you need to know exactly how much you want to save. You need a savings goal. And if you don't know how much college even costs, you'd be hard put to think of a realistic savings goal.
Not to mention, actually seeing the costs for yourself might reinforce the need to save in the first place. Because if you didn't know already, college is expensive.
As it is, college costs have been increasing at a rate of 6% a year. So you need to keep your finger to the wind on this one, as costs change year to year.
So, make a list of the colleges you are considering and write out their costs. This will give you a rough estimate of what you will have to pay to attend college.
Use a college financial planner, if you can, to keep track of all of these costs, your savings, and your spending.
Your Savings Goal
As for your savings goal, you may not be able to save for your total college costs but you can save for part of it.
Maybe you'll want to save enough for first year's tuition. Or to cover room & board and textbooks.
Whatever it is, make sure you set a reasonable goal that you know you can achieve. At least with a bit of effort. You don't want your goal to be too easy and not save as much as you could've. But you also don't want it to be so hard that you give up halfway.
3. Get a Job
In order to save money, you first need to make money. So that means you are going to need a J. O. B. Oh yes, a good ol' fashion job!
Now, don't just get any old job. Get one that pays well and has a good working environment. It also wouldn't hurt to enjoy what you are doing and learn new skills while you're at it.
If you can't work during the year, use your summer and winter vacations to try and stack up some cash. Become a life guard, a swimming instructor, or work at the zoo.
Of course, don't let your job interfere with your school work. After all, you don't want to mess up your GPA. That could stop you from getting into the college you were hoping to go to.
What's more, the lower your GPA, the less likely you will qualify for merit-based scholarships and grants. And that is free money that would help you pay for college! You don't want to screw that up!
Side hustling is a great way to save more money for college!
4. Sell Your Stuff
If you are anything like me, you have plenty of things lying around that you aren't using. So why not find these things a new home and make a little cash while you're at it?
Grab some of your old hand-me-downs, toys, unused gifts and clothes and have a yard sale. If that's too old school for you, just go online and sell them on Ebay, Poshmark, Facebook Marketplace, or any other site you can think of.
Because as they say, one man's junk is another man's treasure! Cha-ching!
5. Sell Your Services
We all have skills and talents that we are either born with or we develop over time. And when it comes to making a little extra cash on the side, putting those talents to use is the perfect solution.
If you are brilliant at Math, why not tutor? Do you make nice soy candles? Sell them. Born with the baseball player of the year gene? Coach little league.
Your options are endless when it comes to the things you love to do and do well. So stop and think about what it is that you do well and what skills you may have. Then make plans for how you can give it to others and make some cash while you do.
6. Take AP Classes
Another tip to help you to save for college would be to take AP (or IB) classes while you are in high school.
Taking Advanced Placement (AP) classes while you are in high school is one of the best ways to cut the costs of attending college. That's because these AP classes can help you earn credits for college.
And, with the average college credit costing about $600 and 38 AP classes you could take, you could potentially save over $22,000 in tuition!
The catch is you can't just take AP classes, you need to pass them and the AP test. That way you are eligible to use them as college credit in the future.
There are over 38 AP classes you can take that could save you tens of thousands of dollars in tuition!
7. Take Classes at a Local Community College
Speaking of earning college credits, a direct way you can do this is by actually taking college courses at your local community college.
There are just about 1,000 community colleges in the US and they should have all the basic subjects that you will probably need to take your first year in college.
So why not get an early start? See what the requirements are for your dream college. Then sign up and take a few of those courses at your local community college.
By taking these courses at a community college, you will end up paying much less than if you had taken them at a college or university. And anything that saves you money is good.
Of course, be sure to pass said courses or else you will end up having to take them again when you get to college. And that will end up costing you more money instead of saving you money.
8. Accountability Partner
There's nothing better to help you stick to your savings goal than having an accountability partner. So one of the most important things you can do now to save money for college would be to get an accountability partner.
That is because your partner will help you stay on track when you get distracted or saving for college becomes too hard. They are an excellent source of motivation and encouragement. And can keep you going when you feel like giving up.
Statistics show that when you tell others about your goal, you are 65% more likely to achieve it. And when you have a specifically chosen accountability partner, your success rate goes up to 95%!
That's huge!
Because of this, it is important to have a partner in your college savings plan. And, for your sake, make sure you pick a good one.
9. Track Your Spending
The greatest detriment to your savings effort will be your spending habits. To counteract this, make sure you keep track of your spending.
Keep a notebook on you and write down the things you are buying and when. Note the things you buy a lot and determine whether these purchases are worth it.
See what things you can cut back on so that you can save more money for college. You may even want to consider doing a spend cleanse to really increase your savings rate.
The point is, once you become aware of your spending, it is much easier for you to control it. And with that kind of control, you can make sure your money is going where you want it to go.
Straight to your college fund!
10. Apply for Scholarships
No matter how hard you work or how much you save, it may still not be enough to attend the college of your dreams. You may need to look to outside sources to cover the rest of your college costs. This should definitely include scholarships and grants.
There are thousands upon thousands of scholarships out there for every kind of major, interest, ethnicity, social status, sexual orientation, and dream. So take some time to do a bit of research and apply to those scholarships and grants that you are eligible for.
Never assume that you don't qualify. And don't be afraid to apply to each and every one of them. After all, you can never have too much money for college!
Having a specified accountability partner makes you 95% more likely to achieve your goals!
All in All
Saving for college will be one of the most important things you'll do, as it can have lasting affects on your financial future. So learning how to save for college is imperative.
I hope this article has helped you think of some ways you can start saving money for college.
There are many people out there, ready and willing to help you as you plan for this next adventure in your life. So talk to your parents, friends, and school counselors and see what options you have and what advice they can give.
*DISCLAIMER: The Information provided in this post is simply the opinions of the blogger and is given in the spirit of educational fun. It is not investment advice. Please do your own research and decide what is right for you before investing in any asset. If necessary, seek the help of a certified professional in discussing your options.