Although a College degree no longer guarantees excellent job prospects, thoughtful parents still want to help their children on the road to success. Whether that means a college education or a trade, either way it’s going to cost money. So the sooner you start saving, the better off you will be.
Start Planning
In order to properly make plans on how to start saving for future education, first, you need to know what you want that education to be. Will it be a full ride to a 4-year University? Or even Grad School? Or will it be two years at a Community College or Trade School?
Before you look down on trade school grads, here is a list of Top Paying Trades and their average salaries in 2021 (not starting salaries) and the entry cost is much lower than a 4-year degree:
- Elevator and Escalator Installers and Repairers: $97,860
- Pile Driver Operators: $75,950
- Aircraft Mechanic: $69,470
- Construction Inspectors: $68,480
- Boilermakers: $64,290
- Plumbers: $63,350
- Construction and Building Inspectors: $61,640
- Brick Masons: $61,430
- Electricians: $60,040
- Sheet Metal Worker: $58,760
- Computer Support Specialists: $57,910
- HVAC Technician: $54,690
- Truck Driver: $50,340
- Carpenters: $48,260
- Welder: $48,240
- Auto Mechanic: $47,990
Open a Savings Account Well in Advance
Getting slightly into the nitty gritty of things, let’s cover existing savings accounts, which you can stash your money into. You can reasonably opt for more or less only two different categories. First, you have “Custodial Accounts”. As the name implies, they are accounts opened by parents or custodians on behalf of a child and are taxable. The second option is a non-taxable account, such as the 529 plan, which lets you (or a relative) deposit money and grow it, without worrying about taxes. However, it comes with a caveat that the money from it may only be used for educational purposes.
Start Putting Money Aside as Soon as You Can
When can you reasonably start saving for your college education? The answer is ‘as soon as you feel the desire to.’ After all, when planning and moving to college, you want to start planning on time. And ‘on time’ mostly means years and years beforehand. The only wrinkle with that is that most don’t worry about such stuff until much later in their young adult lives. Still, if you are one of the few who do, you can immediately start putting away your savings and cash gifts from older family members. Or, you can even talk your parents into getting you one of the previously mentioned accounts and occasionally put small amounts of money into them. This will give you a solid base to work on later when you can contribute more.
Look into What Local Jobs You Can Do
If you want to start saving for your college education with any degree of reliability, you’ll need a source of income. Here, of course, there are several challenges to face and overcome. First, consider that you can only get an entry-level job that accepts minors. This means you will probably not be paid much, even if the work is challenging. Then, there’s the worry of working and cutting into your study time. If your goal is to go to college, it would be like breaking the hive for the honey if your grades tank just because you are trying to figure out a way to afford it. Things are as complicated as whether you live in a small or big place. Smaller places mean fewer jobs, but bigger cities necessitate trying to save on living expenses and more competition.
Search for Employment Opportunities Online
If it is hard to find a local job, you may have to expand your search. Thankfully, the internet offers a good alternative. Or rather, many, many alternatives. One of the best options would be to leverage your hobbies and start making money off video games. Items, gold, and resource farming for real money are all a thing. At least if you can stand the monotony! Another good option would be to start working as a freelance blogger. Being able to do research on various topics is an important skill for college. Working as a blogger on assigned topics forces you to develop this skill early and at a decent level as well!
Learn About Proper Budgeting
Now, let’s finish with a little warning. No matter how much you research how to start saving for your college education and how hard you work, there’s one thing that can ruin things for you. And that’s bad budgeting. No amount of money will be enough for you to survive if you don’t know how to manage your money once college rolls around. So, while it is not a skill that directly contributes to the growth of your college fund, budgeting is a definite requirement because it will protect the fund you create. Besides, budgeting can help you put money away by lowering some of your expenses and, therefore, letting you put more money away every month. Mastering this skill will certainly help you throughout life as even many adults actually struggle with budgeting! So, you’ll have a serious leg up on them in the end!
Final Word
Knowing how to start saving for your future education well ahead of time will be immensely helpful. All the work you do early will save you a ton of effort later! So, don’t let yourself get discouraged, and start today.
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