Another 'saving money on and for school fees' ideas post

How to save money for tuition fees

As soon as a child is born, many parents think about setting up some sort of savings for their children’s college education.

With tuition fees always on the increase, it is better to have a sound financial plan in place from the earliest days, so the thought of sending your kids off to college when they grow up doesn't make you turn pale at the thought.

Aside from any cash that you have saved up yourself, here are the top 3 sources that can help you get your kids through college:

1. Savings
2. Scholarship grants and financial aid
4. Part-time jobs 

These are good avenues for you and your children to investigate before they start on their college education.

Here are some ways to make a start:

1. Earlier is better. Start putting some money away weekly or monthly as soon as your child is born. 

First, put the savings or investments under your name. This is for tax reasons.
Later on, decide whether you want to transfer the account to your child’s name for them to use as they see fit, or keep control of the account yourself and pay the fees and expenses from it yourself.
There may be tax implications and this may also affect any applications for financial aid, so get some advice from an accountant or tax agent.


2. Scholarship grants and financial aid

Contact the schools your child is applying to, to ask if they have any financial aid programs available. While your child is still at high school, talk to the school counselor about what types of financial aid are available for someone in your situation.
Look into scholarships that pay money to students that excel in certain areas.Look into welfare groups that may provide financial help or help paying for books and equipment. Does your child excel at a certain sport? Sports scholarships are a coveted way of funding college, take advantage of one if you can.


3. Part time work

Encourage your child to find themselves a part time job. This sets them up with good work habits and gives them some responsibility. Help them to find a job that does not take up their every waking moment though and try to ensure they are not being taken advantage of by their employer.

Student loans should be a last resort. 

These can be a huge millstone round the neck of a young person once they enter the workforce and are trying to pay it back, often while supporting a young family and paying rent or a mortgage. Use student loans only if there is no other way to fund college.