Saving Up is Hard to Do: 7 Ways to Save for College

Today is the first day of kindergarten, but before you know if, your precious one will be off to college. How do you plan to pay for it? Whether your child in an infant, in kindergarten, a preteen, or ready to graduate next spring, here are seven ways that you can help ease this financial burden.

1. Apply for scholarships. Unfortunately, scholarships cannot be planned out from birth. There are no guarantees and usually limited funds. However, if you child excels at anything from sports to scholastics to a unique hobby or career field, there are a number of scholarships your high-school student can apply for before graduation. Most of these have early deadlines, so it is best to get started as soon as possible.

2. Try to get loans. Loans can come in many forms. You can get as many educational loans as possible to help pay for a semester (or eight) of school. Educational loans are based on income levels and are lower interest than your average bank loan. However, if you do not qualify for enough loans through your school's financial aid department, you can also try the bank. Banks often make loans or allow you to take out a second mortgage for education purposes.

3. See if you qualify for grants. Sometimes, it takes all you have just to get by. But, that should not keep you from getting a higher education. One way to lighten your financial load is to see if you qualify for grants. Grants are government aids that a student is not required to pay back. One well-known grant is the Pell Grant, which aids students across the nation in achieving their educational goals.

4. Open a 529 College Savings account. More recently, a popular option has been to open up a 529 College Savings program. In contrast to a traditional savings account, a 529 is designed for savings toward higher education. To promote these accounts, there are benefits such as state tax relief, protection from financial aid calculations, and opportunities for matching grants. Currently, there are two types of 529 plans: saving and prepaid. Prepaid plans allow you to pre-pay your tuition at today's rate. They will then be paid out at the future cost when the time for college is here. A savings plan is more conservative and allows you to contribute as you go.

5. Purchase stocks and bonds. Although the prices of stocks will rise and fall, a stock is a sure way to increase the amount of money you have available for your child's education. In addition, stocks and bonds can be purchased by anyone and given to your child as a gift. For more information about stocks and bonds, you should consult a financial planner.

6. Utilize reward programs, such as Upromise. Citi's Upromise Credit Card is revolutionary in their attempt to make a positive reward program. The Upromise program is a 529 savings program, which allows a percentage of your credit card purchases to be placed in a 529 plan. Plan participants can earn up to 25% from various participating stores and services.

7. Enlist the help of relatives. Sometimes it may be hard to ask for help. But, it is for an important cause. If you have grandparents, or helpful aunts and uncles, who would like to open up a savings account for your child, suggest a 529 plan or that a traditional savings plan be used for educational purposes.

Planning for your child's future can be scary, especially if you have used one of those calculators that tell you how much college will cost when your child becomes of age. The best thing you can do is to start now. If you cannot start saving today, make a plan that allows you to start saving in the near future. Your child's education is worth it.