How to deal with college costs
By getting your debts taken care of as soon as possible, you can begin taking care of this goal, so that it, too, doesn’t overwhelm you later. After all, your goal is not to just eliminate debt or save for the future, but to do what you need to do, so you can get on with enjoying today.
Just like with retirement, there are things you should be doing today, even in the midst of getting out debt, to help prepare for future college costs:
Move to a different state. Just kidding. But there are some states that offer their residents a matching contribution for putting money into a Section 529 plan. For example, the Arkansas Aspiring Scholars program will match a $250 contribution to their state savings plan with up to $500 (depending on income).
Check with your state treasurer’s office to see if such a plan exists. Contribute toward college for holiday and birthday gifts. Consider opening college accounts for your kids at your local brokerage house and asking the grandparents to divert some of their holiday spending there. Trust me, your kids will appreciate it way more than a pair of socks.
Use UPromise and BabyMint. Both of these services are free to sign up for, and set aside money into a college account for your child every time you shop. It doesn’t actually increase the cost of your purchases, but instead is a way for stores to reward you for your loyalty. You can also have your friends and family register their cards to contribute to your child as well.