Single Parents Tips to Saving for College
Its clear that saving for college is not an easy task and many single parents could argue that saving for college is just not in their budget or isn’t realistic for them. But there some tips that can help the single parent defer college costs for young children. When you think about it when single parents save for college he or she is making an investment that will someday pay off. According to the College Saving Plans Network (collegesavings.org) “âÂ?¦the average cost of a four-year education at a public university is currently $42,544, and $107,416 for private colleges. Over the past decade, expenses at public institutions have increased nearly 40%, and costs will almost certainly continue to rise.” The College Savings Plans Network is a website dedicated to help parents discover college savings plans in every state. Some tips for single parents to save for college are:
Start Saving Early
According to the College Saving Plans Network starting to save for college early is crucial. This is especially so for single parents who have a limited income. Your child may just be three years old, but like veteran parents know time is not on our side. Children grow up very quickly and $10.00 or $20.00 a week invested can turn into a lucrative investment.
Recruit Others to Save
Grandparents, aunts, uncles, and godparents are good people to look to once a single parent decides to start saving for college. Upromise (upromise.com)a popular college savings plan provides a way for mulitple people to save for one, two, or even three children. Upromise has partnered with large companies to provide a way to save for college after purchasing certain products. After using the free registration family members can register credit cards and start saving. Single parents can utilize Upromise and ask everyone who is related to the child or closely related to register with Upromise. Every dollar helps.
Research Plans and Benefits
New York State offers a college savings plan. It’s called the New York 529 plan. Designed with the frugal parent in mind – a parent can start off by contributing just $25.00. The Direct Plan (529) is set up to take automated deductions from paycheck and from bank accounts. However, there are many plans available. Large financial companies have college savings plans. If money is tight for single parents he or she should look for the plan that can take the smallest contribution but one that brings back a nice reward. Research different plans and take into consideration the LONG TERM benefits. Single parents, thinking long term is your best bet.
Identify Educational Foundations and Scholarships Early
Get on mailing list of educational foundations and ycompanies who offer scholarships. Single parents this may be the wisest thing that you do. Many foundations especiall those that have been in existence for years almost always have the same qualifications. Stay informed on what scholarship opportunities your child may be able to tap into. Single parents of minority children can also use the benefit of knowing what is out there. For example, Native American children may qualify for certain scholarships as well as female children. Even when your child is two years old, create a portfolio of educational monies that are available. Regardless of what major your child decides on it is better for you to know early on who is offering what.
Bottom line single parents need to use some if not all of these tips to saving for college. Your child even in the womb is worth the research and worth the effort. Be informed!
