First, get your finances in order. Financial advisors all stress that this is the most important step in preparing to pay for your child's education for two reasons. First you will be far more able to direct resources towards your child's education if you get your balance sheet in order and get your credit score up in case you need to apply for private loans. Second, you absolutely want to make sure you are saving for your own projected future expenses (retirement, long term health care, retirement home, etc) so that you do not become a burden on your children later, especially not while they are in college. A fee for service financial advisor can help you with this.
Second, protect your assets. Protect your greatest asset - your ability to earn an income - and cover your largest expenses - most likely your home mortgage - with cheap term life insurance. If you die, how would your family pay their mortgage? Who would replace your income? Depending upon your age and health you could pay as little as $20/mo to have your family protected in case something unforeseen happens. Term life insurance can cover these costs so that one family disaster doesn't cause another by ending your child's dream of attending college.
Third, open a 529 account. Sign up for a 529 Plan for your child/children AND LET RELATIVES KNOW ABOUT IT so they can make contributions towards college instead of buying more toys. As little as $25 on birthdays and Christmas, from several relatives, adds up quickly. These plans are tax advantaged accounts (some states even allow you to deduct contributions from your state income taxes) that are solely for education expenses. Regulations change, so for the most up to date information talk with a financial advisor.
Fourth, sign up for Fidelity Rewards AMEX and VISA cards and link the cards to your child's 529 (FYI, they can also be linked to your own retirement account instead, either an IRA or a regular account). These cards offer 1 - 2% cash back with no annual fee and unlimited accumulation. You can easily save hundreds of dollars per year with these cards making normal everyday purchases you were already making.
Fifth, sign up for a UPromise account from Sallie Mae. This is an amazing program that Sallie Mae has set up where once again you can earn hundreds of dollars per year making purchases you were already making (if you don't know who Sallie Mae is, you will when your kids get to college - Sallie Mae is a large lender and servicer of college loans). Sallie Mae has made all of the arrangements with the different service providers; it is transparent from your end. All you do is sign up, give them the 529 account information you want the rewards to transfer to and give them the information for the different credit cards you want linked to the Upromise account. From then on, whenever you make a purchase with that card from a participating vendor, up to 25% of the purchase price is transferred to your child's 529 account. Even better, after your child graduates you can link the Upromise account to their student loans and help pay down the balance. Once again, let your relatives know you've signed up for the program and ask if they would like to link any of their credit cards as well.
Ready? Time to get started. Most of the tips listed here can be completed in an afternoon. If you are serious about wanting to help set your child up for attending college, take the first steps today by signing up for your rewards cards and opening your child's 529 account.
Visit http://www.quicktipsforfree.com for more free tips on topics important to you.
Article Source: http://EzineArticles.com/?expert=Ben_Reece
Article Source: http://EzineArticles.com/7832735
Second, protect your assets. Protect your greatest asset - your ability to earn an income - and cover your largest expenses - most likely your home mortgage - with cheap term life insurance. If you die, how would your family pay their mortgage? Who would replace your income? Depending upon your age and health you could pay as little as $20/mo to have your family protected in case something unforeseen happens. Term life insurance can cover these costs so that one family disaster doesn't cause another by ending your child's dream of attending college.
Third, open a 529 account. Sign up for a 529 Plan for your child/children AND LET RELATIVES KNOW ABOUT IT so they can make contributions towards college instead of buying more toys. As little as $25 on birthdays and Christmas, from several relatives, adds up quickly. These plans are tax advantaged accounts (some states even allow you to deduct contributions from your state income taxes) that are solely for education expenses. Regulations change, so for the most up to date information talk with a financial advisor.
Fourth, sign up for Fidelity Rewards AMEX and VISA cards and link the cards to your child's 529 (FYI, they can also be linked to your own retirement account instead, either an IRA or a regular account). These cards offer 1 - 2% cash back with no annual fee and unlimited accumulation. You can easily save hundreds of dollars per year with these cards making normal everyday purchases you were already making.
Fifth, sign up for a UPromise account from Sallie Mae. This is an amazing program that Sallie Mae has set up where once again you can earn hundreds of dollars per year making purchases you were already making (if you don't know who Sallie Mae is, you will when your kids get to college - Sallie Mae is a large lender and servicer of college loans). Sallie Mae has made all of the arrangements with the different service providers; it is transparent from your end. All you do is sign up, give them the 529 account information you want the rewards to transfer to and give them the information for the different credit cards you want linked to the Upromise account. From then on, whenever you make a purchase with that card from a participating vendor, up to 25% of the purchase price is transferred to your child's 529 account. Even better, after your child graduates you can link the Upromise account to their student loans and help pay down the balance. Once again, let your relatives know you've signed up for the program and ask if they would like to link any of their credit cards as well.
Ready? Time to get started. Most of the tips listed here can be completed in an afternoon. If you are serious about wanting to help set your child up for attending college, take the first steps today by signing up for your rewards cards and opening your child's 529 account.
Visit http://www.quicktipsforfree.com for more free tips on topics important to you.
Article Source: http://EzineArticles.com/?expert=Ben_Reece
Article Source: http://EzineArticles.com/7832735
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