Top 5 ways to save money for college

August 3, 2012

Are you planning to join a reputed college after school? Do you have the proper savings to pay for college fees and other expenses? If not, then it is high time that you take measures that can help you save some money that can cover your college education costs affordably. Parents are always there but you need to play your part as a responsible child.

The striking question is that why is necessary to save when you can get an education loan or a payday loan whenever you need? The point is any kind of loan will also have interest rates associated with it which you will need to pay. During college you may find it difficult to bear such huge installment as you would not have a permanent income source. Again if you retain your loans even after college it would have negative impacts on your credit report. So it is better that you look forward to a safe option like savings that would cater to your problem without getting you into debts.

Mentioned below are some tips on how you can save money to pay your college expenses:

  1. Set achievable goals: The little pocket money you get from your parents would not allow you to save much initially. But you can still start with some savings that you can afford after meeting all your expenses. Build a savings fund account, set some goals and try saving that particular amount each month. After some month these little savings will add up to a substantial sum that you can use to meet your college expenses.
  2. Don’t spend recklessly: Most of the debt problems arise due to reckless spending on credit cards or excessive shopping. Keep a check on your spending habits so you do not get into any debt issues. If you have to pay back dues on your credit cards you would not be able to save even a penny. Cut down all those expenses that are unnecessary and can be done away with. Instead put that money on your savings fund.
  3. Avoid using your savings fund: If you keep on spending the money from the savings fund account it would be no use to save. You would not have any money left when you actually need it to pay your college fees. So it is very important that you keep a check on your expenses and avoid using the money unless it is an emergency.
  4. Get a part time job: If you do not want to cut short your other expenses it would be a good idea to increase you income by opting for a part time job. Even if you have taken any loans to pay for your college expenses you can afford it comfortably through your part time income. Moreover as you will be occupied with jobs will get less time to spend and thus your savings will increase. If you can save a good amount of money you do not have to worry about your college expenses anymore.
  5. Stick to a monthly budget plan: A good way to increase your savings is to make a monthly budget plan and stick to it as much as possible. Note down all your expenses and also your income sources like pocket money, part time job, extra shift income etc. Avoid expensive college parties or trips that you cannot afford. Such luxuries can wait till you finish off your basic studies.

Author bio: Jonny Pean is a financial consultant with EasyFinance.com. He helps people to tackle their financial problems by helping them with tips on budgeting, savings, loans and other financial issues.

Note: If you are planning to join college it is better to be prepared financially beforehand. You parents may pay for your basic fees but then there are other added expenses that you may have to bear from time to time. So it is necessary that you try saving some money that can help you cover your college costs later. The article deals with some of the ways that can help you save.

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