WAYS TO SAVE FOR YOUR CHILD RIGHT NOW!!!
1. Limit the Toy Buying!
Stop buying all these toys and gadgets the kids won't use within the next five years. Instead take the extra funds and put it in an interest bearing account like ING Direct. You can also check www.bankrate.com and see what other high interest bank accounts with a low minimum starting balance may be available out there. Next time in the grocery store or another outing stick to telling your child no on the additional toy they're crying out for and take that few extra dollars and put it a jar 'marked the stash jar'. Just try adding the few dollars and leftover change to that jar and at the end of the month see how much you have. Try it out, can't knock it until you try it, right?
2. Cut the spending! Free up some money.
Take a second look at your expenses and ask yourself some hard questions. For example:
Can you cut the cable bill in half? (Do you need digital or the extra movie channels?)
Can you cut the cell bill down? Do you need those extra minutes? You need the internet access on the cell?
Can you cut back on eating out so much? Cook more and eat at home, even fire up the grill once in a blue. (Yes the grill can be fired up during winter months, we're talking about a grill not the pool)
Can you downsize to a smaller car and cut the car note down a bit? Insurance?
What other bills can you cut back on? (Shopping..)
3. Gifts from Family and Friends
This is a good opportunity. The next time your family member like grandparents, aunts, uncles, etc and friends offer to pick up something or grab the next birthday gift, mention a contribution to a 529, savings bonds or savings account for the kids. You could consider opening a account at your local bank in the child's name and have that family member or friend write that check out to the child. Better yet a lot of 529 providers offer gift certificates now. How about Upromise. Heard of that? Well Upromise is a program that allows you to take some of your money from purchases you make, like 2-3% and have those funds deposited directly into a Upromise Rewards account. Over time these deposits can really add up and after the balance reaches a certain amount, Upromise will begin transferring those funds to your 529. (Only a 529 managed/affiliated with Upromise). They also offer a savings incentive called UGIFT where folks with 529s can encourage their family and friends to make contributions to their child's 529 account. Check out www.upromise.com for more information on some of these programs.
4. Tax Rebates, Credits (like the Earned Income Credit), Income Tax Return moneys
When you get some extra funds after filing your tax returns consider using the extra funds or at least some of the money towards starting that savings account you've been putting off.
5. A raise or unexpected bonus at work
Okay the economy sucks and most folks are worrying about keeping their jobs. I know, I know however some companies are still pretty stable. Yes these companies and jobs exist. When things pick back up and if a performance increase, bonus or other raise comes through take advantage of this. Immediately consider putting at least half of the extra money into a savings account of some sort for your child/children and perhaps the other in your retirement or rainy day stash. You'll be living like you never received the raise as you were before. The extra funds goes somewhere that can accumulate over time and earn some interest for the kids. Try checking out a plan with your local bank or an investment where the funds can be pulled directly from your paycheck or bank account on a set schedule like an automatic debit program.
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