How Smart Moms Grow College Funds
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Are you a working mom who wants to create a college fund for your kids? It’s a challenging project to start during an impending recession and amid record-high levels of inflation. But it can be done with a bit of financial finesse and imagination. The secret is to think incrementally because that’s how every successful savings plan gets off the ground.
Be ready to do some thinking as you develop a 10-year plan. Expect to make a few guesses about future income levels and expenses. Keep in mind that the 10-year blueprint is more of a guideline than a carved-in-stone program. After you get that down on paper, explore ways to reduce monthly expenses. If you have student loans, consider refinancing them to bank significant savings.
The next phase is to shop for schools based on what’s currently available in terms of state universities and community colleges. There’s a huge trend now toward online study. A decade from now, it might be more common for students to do an entire four-year degree program online than in a traditional school. Get an idea of what online degrees cost so you’ll be ready for that possibility. Here’s how to get started.
Minimize Monthly Expenses
If you’re paying on multiple education loans, a refinancing arrangement can make a huge dent in monthly cash outflow. By using NaviRefi student loan refinancing, busy moms can reduce their loan payments a lot. How much? The amount is different for each person, but don’t be surprised if the reduction of expenses from this one tactic is enough to cover your child’s college fund. Typical situations in which people opt for a refi come with more favorable interest rates, flexible terms, and lower monthly payments.
Shop for Colleges Now
Why should you shop around for your child’s college a decade in advance? It’s a smart way to learn the lay of the land, get a solid feel for what things cost, and more. Consider prioritizing your local state’s universities and your city’s community colleges. Ask about special programs that cover all or part of the tuition for incoming students who major in nursing or premed. There are also numerous financial deals and major tuition reductions for anyone who earns a teaching certificate and agrees to work in a local school for at least one year. Youngsters who major in education, nursing, and social work can usually get at least a portion of their school expenses paid by social service organizations.
Be Realistic About Goals
It’s impossible to predict what kind of career and academic goals your young children will have ten years from now, so try to set realistic financial goals. If resources are limited, aim to cover a percentage of education-related expenses. In today’s challenging economic environment, it’s a major accomplishment to put anything aside for the future. Some mothers are content to save enough to pay for a youngster’s first year of college in full or to cover tuition only for one or two semesters. There are endless variations. Just remember that a college fund does not necessarily have to pay for an entire four-year course of study.
Thank you,
Glenda, Charlie and David Cates
