6 Ways Make Sure You Don’t Get Saddled With Your Kid’s Student Loans

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It’s always good to have something ready for your kid’s education. But if you haven’t started saving, how can you start or make up for lost time? Here are six ways to help secure your kid with a comfortable sum for their college career.

Keep Priorities in Place

Emergency fund in the glass jar with cash.
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You’re probably excited to start funding your kid’s future. Still, there are so many other things you should be throwing your money at before you even think about setting aside money for college.

Prioritize having an emergency fund and paying off all debt before you put a cent in the college fund. It sounds harsh, but you have to take care of yourself first. Otherwise, you can’t take care of anyone else.

Start a 529 Plan

Filling 529 College Savings Plan Form. Bank Deposit
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If you haven’t heard of them, 529 plans are easily one of the more popular ways to set your kids up for success with a college fund. These savings accounts are sponsored by state governments, and most states will let you deduct whatever you add from your taxes.

Plus, you won’t be taxed when you withdraw money, so there’s added flexibility that way. And you don’t need a lot of money to open one either!

Start a Custodial Account

Happy cute pretty accountant working with computer and calculator.
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Custodial accounts usually come in two forms: UGMAs (Uniform Gift to Minors Act) and UTMAs (Uniform Transfers to Minors Act). They’re similar, but UTMAs also have the added benefit of including physical assets.

Fair warning — these accounts require you to trust that your child will use it for its intended purpose since they have free rein over it when they turn 18.

Buy Savings Bonds

US Savings Bonds. Savings bonds are debt securities issued by the U.S. Department of the Treasury. They are issued in Series EE or Series I.
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Another way to save is through buying savings bonds through the U.S. Treasury. You can’t get them as paper certificates anymore, but they’re just as valuable. And as long as they’re used for higher education expenses (not including room and board), you don’t have to claim them as income on your gross income for tax season.

Savings bonds are excellent because they’re low risk since they’re guaranteed by the government. However, bonds won’t gain much in terms of interest over time.

Try Investing in Mutual Funds

Mutual Fund Investing
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On the opposite end of the risk spectrum is investing in mutual funds. It’s another limitless option, but there’s no guarantee your money will be unscathed. You’ll also be subject to capital gains tax whenever you sell the shares. Mutual fund assets can also affect a student’s eligibility for financial aid. But since the ceiling for earning is higher, it could be worth it.

Don’t Worry About How Much You’re Saving

businessman holding coins putting in glass. concept saving money for finance accounting
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Putting the methods aside, many people don’t start a college fund because they think $20 amounts to nothing. But if you start early enough, your pre-emptive savings could take an extreme future financial burden off your family.

For example, if your kid goes to college at 18 and you save $50 a month starting when they’re 8, which most would consider later than average, that’s still $6,000 that can go to their education. It’s certainly nothing to sneeze at!

15 Items That Used to Be Cheap but That Are Now Shockingly Expensive

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It’s no secret that the cost of living continues to rise. While some items have remained affordable, others have seen significant price hikes that might shock you.

From everyday essentials to guilty pleasures, here are 15 items that have become shockingly expensive.

15 Items That Used to Be Cheap but That Are Now Shockingly Expensive

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

Funny child hugs the radiator. Kid in hat and warm clothes enjoying home heater. Heating of housing during the energy crisis in the winter cold season. Restrictions and savings of gas and electricity.
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I’m super frugal, and one of my passions is sharing my frugal living tips with everyone.

Here are some of my absolute favorite frugal tips to help you get started on your journey to frugal living.

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

15 Things That Are No Longer Worth It Because of How Expensive They Have Become

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Image Credit: PKpix/Shutterstock.

 

Everything comes with a hefty price tag these days. From indulgences to essentials, the cost of living keeps rising. We used to consider certain items affordable options, but now they’ve become so expensive that they’re no longer worth it. Here are 15 things that have lost their affordability and make us wonder if they are worth it!

15 Things That Are No Longer Worth It Because of How Expensive They Have Become

28 Practical Ways Frugal People Save Lots of Money

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Saving money doesn’t have to mean saying goodbye to life’s little indulgences. With a few smart tweaks, you can stash away cash for that dream vacation, rainy day fund, or splurge-worthy purchase without feeling like you’re on a constant budget patrol.

Think of it as a side hustle that pays off without the extra hours. Whether you’re looking to conquer debt or simply boost your bank account, these tips are guaranteed to put more money in your pocket, painlessly.

28 Practical Ways Frugal People Save Lots of Money

14 Ridiculously Random Tips That Could Save You Lots Of Money

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Want to save some money? There are so many ways to save money that are published in articles all day, every day.

It can be tiring to sort through them and find the ones that work for you, so we decided to scour the internet and find some of the best ones to share with you. But we couldn’t decide which ones to share with you, so we just decided to share the ones we liked, which means that these are pretty random!

14 Ridiculously Random Tips That Could Save You Lots Money

 

 

Author: CJ Darnieder

Bio:

CJ is a writer and musician from Chicago.  When he’s not practicing the divine art of stoicism, focusing on achieving a deafening inner quiet, or attempting to reconcile with the inherent powers of the universe, he loves to cook!

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