Raising children can present countless budget challenges for young families. The idea of saving for college now, while you’re already juggling everything from baby food to ballet classes, can feel overwhelming. And while college is growing more expensive, saving for your child’s future is possible. The key is playing the long game — and remembering that it’s never too early to get started.
To help you out, we consulted the experts to come up with 5 tips for finding more money in your budget for college savings:
- Go Generic. When it comes to shopping for clothes, shoes, toys and pretty much everything else, avoid the name brands. Babies and preschoolers don’t know the difference between Target’s house brands and Calvin Klein, so what does it really matter? And amid persistent inflation, the savings can make a significant difference.
- Redirect Your Childcare Fees. With the average family paying as much as 20 percent of their annual income on child care, a child’s move to kindergarten is not only a major milestone — it can also result in something of a monthly landfall. Draft a plan to shift all or a portion of those dollars to your child’s college fund. If it’s already a regular expense, this shift shouldn’t stretch your budget too much.
- Set up Automatic Payments. After you decide to start saving, automate the deposits to give your savings an edge. Even if it’s only $10 to $25 a month, you’re mastering a habit that is essential to financial health. And every dollar you save today is one your child doesn’t have to borrow in the future.
- Find Alternatives to Dining Out. Forego overpriced coffee chains and purchase a decent coffee maker to craft your own beverages in the comfort of your kitchen. Or create a bento box lunch habit. Instead of a fancy restaurant, embrace a change of venue and treat the family to a picnic in the park or a backyard cookout. Over time, these savings add up.
- Use Your Local Library. Discover books and much more at your local library, where kids and adults alike can access computers, get online, join clubs, check out video games, attend summer camps and learn crafts.
Bonus Tip: When birthdays and holidays come around, don’t be afraid to ask family members and close friends if they would like to contribute to your child’s college fund. Lots of people will welcome the opportunity to move beyond toys and clothes. And when you set up an Investment 529 Plan or Prepaid 529 Plan with us, you’ll have a gifting link that is easy to share with loved ones!
The bottom line? You don’t need to start big, but you do need to start. The key is taking smart, simple steps today that will pay off in big ways down the road.
Since 1988, Florida Prepaid’s goal has been to help make saving for college affordable and attainable for all Florida families. Build your perfect college savings strategy in minutes!
