Every possible source of money you can find for college is important to take advantage of. Is this new to you? Catch up here College is very expensive, and any source of money is greatly appreciated by most people.

Corporations that offer college savings plans are going to offer that to their employees to use for their own education or for their child. The longer the period of time you have to save up for this, the better. The company will often match the funds that you put into the savings account. As such, you are going to gain a lot by starting on that savings account with the company at the next possible opportunity. They are probably going to put that money into some very low risk investments to allow it to sit there and grow slowly for you.

College tuition costs are rising each year. You should plan for an increase in tuition as your children grow older. Tuition, room and board and books can be very expensive. Make sure the money you save for college is placed in an interest-bearing account. This will give you extra money for college costs. You should speak with your banker to learn about cost-effective ways to save money for college.

If you don’t think you have enough money to save for college, create a new household budget. There are often little ways to save money that you may not have thought about. A budget will help you control your spending while saving for college. Staying on a budget can be a rewarding and educational experience.

Cut Expenses

First of all, cut out any “luxury” expenses that your household doesn’t really need. For instance, do you really need all of those cable or satellite channels? Do you really need unlimited cell phone minutes and text messages? Do you really need to go out to dinner each week?

Stash and Earn Interest

Once you start saving money by cutting out expenses, though, you’ll also need somewhere to stash that money. Open a dedicated high-yield savings account or a money market account, and start stashing your savings there.

Spend and Get Rewarded

Consider enrolling in a college rewards programs. Your current bank, credit union, credit card company, or employer might already offer these types of programs. All you have to do is ask. You can also search around for an independent college rewards programs. Some allow you to link your current credit cards to the account and earn cash back on your purchases. You might also be able to invite friends and family to link their cards, and you’ll earn even more! Although the amount earned for each transaction may seem piddly, this change can add up quickly and come in very handy when trying to save for college.

There are many options when it comes to saving money for your children’s education. One thing that I always tell people to check into is the benefits within their jobs. Some employers will give parents a certain amount of money to fund their children’s education. This is usually applicable to parents who have been working with the companies for a period of time.

Also, when choosing a savings plan option through a bank, be sure to choose a plan that accumulates the most money over a time frame. Many people are surprised at how much this can help them out in the end. Do some research online before choosing a plan, this way you can make the best decision for your children’s future.

Tax deferral on the earnings, as long as they are used for college tuition, is the most obvious benefit to the 529 Plan. Some states offer additional tax benefits as well. In most states, there is no limitation on when or at what age a person must use their 529 account. If they decide against college entirely, the account can even be rolled over to another family member. There are also no restrictions about who can open an account for whom. It is allowable for a person to open an account for themselves, their children, grandchildren, friends, neighbors, anyone. And anyone is allowed to contribute to each account, not just its owner.

The major downside of a 529 Plan is that money not used for college will be taxed and have a 10 penalty added. It is also possible it will affect financial aid eligibility.

• Education Planning: Taxes, Trusts, and Techniques (Nancy Shurtz) is described as being an invaluable, in-depth resource for the estate and tax planning strategies and vehicles available for families saving for higher education. While focusing on all aspects of the popular 529 plans, the author also provides information on all other savings options, including 529 prepaid plans, Coverdell Educational Savings Accounts, qualified savings bonds, UGMAs/UTMAs, trusts, insurance, financial aid, grants, scholarships, and loans. It compares and contrasts techniques and applies them to different income groups. Also includes numerous planning tips, charts, and examples.
• The Best Ways to Save for College : A Comprehensive Guide to State-Sponsored College Savings Plans and Prepaid Tuition Contracts (Joseph F. Hurley) may be the source for you if you’re trying to understand how 529 plans work: the tax rules, planning strategies, impact on college financial aid. The author compares them to other alternatives such as the Education IRA, savings bonds, and mutual funds and he describes the best and worst features of each state’s plan, along with an exclusive rating system which will guide you to the ones to use and the ones to stay away from since they are definitely not all created equal!
• 529 and Other College Savings Plans for Dummies (Margaret A. Munro) may be a “for dummies” book, but you’ll be the “dumb one” if you don’t access the information it contains which is inclusive of up-to-the-minute details on the plans in clearly written explanations including a tear-out cheat sheet and top ten lists. And, since this topic is also commonly considered stressful, you’ll definitely appreciate the dash of humor and fun that’s thrown in to function as a sanity check!

These are great starting points along your journey, so we hope you’ll consider them as reading material so you can be well-armed with knowledge when it comes to the soon-to-be inevitable tuition battles!