Ways to Save Money for College

Whether you’re a first-year college student or a veteran, a parent or a grandparent, when it comes to saving money for college, there’s nothing you’d like better than to transform into Bonnie & Clyde or George Clooney and company in Ocean’s Eleven.

But since bank robberies are exceedingly more difficult to pull off these days (and, ummm…illegal), here are some better ways to save for college and make living and learning more possible for your student.

Pull out the piggy banks and change jars

One of the easiest ways to save a little extra cash on the side for college is to pull out the change jars and piggy banks. Make a household rule that $1 bills and all change must go in the jars at the end of each day. Some people have saved as much as $30,000 over 15 years just by throwing loose change in a jar everyday and then putting the money in an IRA.

Get a Roth IRA

A Roth IRA has an annual contribution limit of $5,000. However, both you and your student are allowed to have a Roth IRA of your own. There may be taxes and penalties involved, so perform due diligence before opening this account.

Open a 529 student savings plan

A 529 Plan is one of the most popular options when saving money for college. You can purchase these from a broker or direct from the state and choose the investment options that best meet your needs. Plus, the parent/account holder keeps control of the money.

Get on board with a Prepaid Tuition plan

Many states offer Prepaid Tuition plans that allow you to lock in college tuition rates by paying months and even years in advance.

Apply for scholarships

This may sound like a no-brainer, but scholarships are not limited to individual colleges and universities. You can receive scholarships from local businesses, foundations and non-profits and for simple things such as (but not limited to) reading a book and writing an essay about it, having a parent/grandparent that is a Veteran of a Foreign War and writing poems or plays or even participating in community service. Check out FastWeb.com for a nationwide scholarship search and head to your local high school or community college guidance counselor for local scholarship information.

Get a job

If you’re the parent, you’ve probably already got this one covered. But if you’re the student, one of the best things you can do to save money for college is to get a job. Not only will you look better on college and scholarship applications but you’ll also earn some money to put into a savings account.

Open a high-return Money Market savings account

If you’re going to open a Money Market account, do it at a credit union where you’ll have credit union and government backing for your funds. Start automatic monthly deposits and let your account manage itself.