Five Simple Ways to Save Thousands of Dollars for Your Kids’ College
This is a sponsored post. All opinions are my own.
Life has been a little different this year. Our efforts to figure out our path day by day have put a halt on a lot of our long-range thinking and planning. I find myself wondering whether life will ever return to some state of “normal” and what the future will look like for our kids.
Despite the current uncertainty, I believe the future is bright and that new ways of learning will rise out of the current chaos.
While planning for that future may seem uncertain, one of the ways we are trying to support our kids is by continuing to contribute to their Ohio 529 college savings plan every month.
Even though they may not have any idea what they want to do when they grow up, the flexibility and tax advantages of this plan give us confidence that we will be able to support them financially in their academic expeditions.
I’ve partnered with Ohio’s 529 to share that by starting early (even with a small amount) you will have time and tax benefits on your side. When contributing to an Ohio 529 plan you take advantage of higher rates of return (long term vs. traditional savings accounts) and get the benefits of your withdrawals being tax free when used for education expenses.
Ohio 529 funds can be used for schools outside of Ohio as well as programs outside of traditional 4 year colleges.
Did you know that waiting until the age of 5 to start contributing increases the monthly contribution needed by almost 70% to catch up?
The COST OF WAITING TOOL is a cool resource to show how starting now compares with waiting. To make it a bit easier I’m sharing a few simple ways to create a bit of extra cash to save for the future.*
FIVE SIMPLE WAYS TO SAVE THOUSANDS OF DOLLARS FOR YOUR KIDS’ COLLEGE
- Pack lunch 2 days/week – $20/week grows to $27,000 for college
- Buy 1 item per month second hand – $50/month grows to $17,000 for college
- 1 hour a week side hustle – $25/hour grows to $34,000 for college
- Cut one streaming service – $15/month grows to $5,000 for college
- Ask family to help to get you started – $1000 single donation grows to $2600 for college
*note: all estimates above assume a 6% annual return over a 17 year period
LOOKING FOR MORE IDEAS AND WAYS TO SAVE FOR COLLEGE?
My wife is sharing her top five ways for saving money for college. Click here to see them all.