How to Save Money for College: Tips for Parents & Students

The Best Way to Save for College: Tips for Parents & Students

You can probably guess that I get a lot of questions from prospective college students and their parents. Along with how to get into college, “How do I save money for college?” tops the list. 

The truth is, there are several different—and effective—ways to save for college. Today, I’m going to share some of the common methods for saving for college, as well as some of my top budgeting tips for college students. 

How to Save for Your Child’s College Education

Before I get to how a college student can budget once they’re already in college, let’s talk about three good options for how parents can save money to get their child to college in the first place. 

Choosing the best way to save for college depends on so many factors that no one answer is right for every family. These are three of the most popular ways parents save for their child’s education. We’re going to explain a bit about each one to help you determine what might make sense for you.

  1. Education Savings Account (ESA) or Education IRA
  2. 529 Plan
  3. UTMA or UGMA (Uniform Transfer/Gift to Minors Act)

Education Savings Account (ESA) 

With an Education Savings Account (ESA), you can save $2,000 (after tax) per year, per child. The best part is, it grows tax-free. However, the amount it grows will depend on the investments in the account. Luckily, you’ll usually earn a much higher rate of return with an ESA than you do with a regular savings account. You also won’t need to pay taxes when you withdraw the ESA money for education expenses.

Just keep in mind, the money in an ESA must be used by the beneficiary by the time they’re 30, and you must also be within a certain income limit to qualify. Learn more about these plans here.

529 Plan

With a 529 plan, you can save for your children’s college education with higher limits than you get with an ESA. Limits vary from state to state, but most account-holders can contribute up to $300,000. Conveniently, these accounts aren’t designated to a specific child either. Perhaps your firstborn decides to take a different route than post-secondary education. This money can be used for your younger child’s education instead, although this could come with some restrictions in certain cases. 

UTMA or UGMA (Uniform Transfer/Gift to Minors Act)

Unlike a 529 plan or an ESA, the money in a UTMA or UGMA does not necessarily need to be used for education. When the beneficiary reaches age 21 (or age 18 for the UGMA), they get control of this account to use as they wish. There are some tax benefits to these accounts as well: since the assets are technically the property of the minor, a portion of the investment income goes untaxed. Then, an equal amount is taxed at the child’s tax rate, rather than the parents’ or other custodians’ rate.

Budgeting for College Students

Whether your parents have saved for your college or you’re relying on student loans and your own income, budgeting for college students can be a challenging—yet critical—task. 

Though it’s often overlooked, one of my favorite ways for college students to save money is choosing a college with free laundry. I explore this topic even more in this blog post. 

Here are some of the other ways college students can save money:

  • Create a budget that clearly outlines your expenses vs. your income. This should always be the first step. It’s a quick way to see obvious areas that could be a problem (like a $7 coffee per day habit!).
  • Always research scholarships you could be eligible for. Here are some case studies of how the students I work with have scored big scholarships.
  • Compare the cost of living on campus vs. off. Price isn’t the only consideration here either. Here are some of the pros and cons of living off-campus.
  • Buy used textbooks whenever possible. This can be an incredible money-saving method for college students, especially considering textbook costs are estimated to have jumped 812% in the last 35 years. 
  • Seek out campus resources for cheap—or free—fun activities at school.
  • Utilize free campus amenities whenever possible.
  • Limit meals out, especially if you’re already paying for a meal plan and living on campus. 

Easing the financial burden of a college education is possible, although it can come with its challenges. Whether you’re saving money for a future college education or trying to cut back on costs as a student, it takes planning and forethought to pull it off. 

But help is available!

If you’re looking for one-on-one guidance to help you your teen get in and get money for college, click here to learn more. 

Are you struggling to find the right college? Sign up for my FREE upcoming master class!

Want to see more posts like this? Don’t miss these: 

What to expect at freshman orientation

Top 10 must-dos for college-bounds juniors

7 ways to support your teen during the college application process

How to Create a Smart College Application Strategy

College application deadlines are not the most exciting topic to consider as your teen prepares for college during high school, but it’s a very important topic one. It’s important because it can make a big difference in terms of what you pay for college as well as impact your student’s chances on getting admitted. Here’s an effective college application strategy to help navigate these important dates.

The Importance of College Application Deadlines

Each year there are different application deadlines that your teen can use for their applications for college. They sound similar, so it can be confusing to understand how they are different. I’ll explain how they can impact your teen and their college future.

Regular Decision Deadlines

One of the deadlines is simply the regular decision deadline that happens every year,  usually around January. The thing to remember is that application deadlines are very unforgiving, so your teen needs to make sure that they meet that deadline.

Regular decision is a standard deadline, and another deadline you may hear about is the “rolling deadline”. The rolling deadline means that your teen can submit their application at any time. Usually they’ll get a notice back of a decision about three or four weeks later (but sometimes it could be sooner, depending on the time of year).

Rolling Admissions Deadlines

The rolling deadline is one that doesn’t have a specific date. So, it could start perhaps as soon as October and keep going until the final deadline, which means that all the applications have to be in by that time. Or it can be set to go as late as the spring of senior year.

Early Action and Early Decision

Now that we’ve covered standard and rolling deadlines, I want to review two other deadlines that can be a bit confusing because they start with the same word. One of these deadlines is the “early action deadline”. Early action is non-binding, which means that your teen can apply to an early action deadline and usually they’ll find out the decision perhaps around December. It gives them a little bit of ease, especially if they do get admitted, because they’ll know pretty much where their application stands. Then, if they want to apply to some additional colleges, they still have time to do that under the regular deadline.

The fourth deadline I want to talk about also starts with early, and it’s called “early decision deadline”. Early decision is more strict because this deadline is binding. Every year, there are a lot of families that will apply under the early decision deadline. With the early decision deadline, because it’s binding, you cannot apply to any other colleges that have any type of restrictive deadlines. You want to make sure that you read the fine print on that.

The early decision deadline is one that the parents have to sign off on. Also, the school counselor will be notified as well. The key thing with the early decision deadline is that it means that if your teen is admitted, they must go to that college, regardless of financial aid. This is where sometimes I will see families who decide to do the early decision deadline, because that’s the only one that a particular college offers for them (either early decision or regular).

Generally with the earlier application rounds, the admissions rate is a bit more favorable. Families that want to make sure that their teen has the best shot in terms of admissions will often go ahead and exercise that option to use the early decision deadline. But soon after, if the decision comes back positive in December, you have a short window of time to withdraw all of your other applications and to submit your deposit to hold your space.

That’s a really serious deadline. Sometimes families will say, “Oh, I didn’t know. I thought we would be eligible for financial aid.” They get a surprise that they don’t get any additional aid and then it’s trying to figure out, “Okay, how do we pay for it?”

It’s a deadline that I wouldn’t take lightly. It’s certainly your family’s choice if you decide to do the early decision round, but know that it means that your teen will be going if they get admitted, regardless of what the financial aid is.

At least with the early action option, you have a chance to look through the financial aid offers from other colleges as well. On the flipside, some colleges will offer only the early decision deadline, and then others may have an early action, or they can also have an early decision as well. So you want to be sure you know the deadlines for your student’s college of choice when they begin applying!

One thing I will add about the very late regular decision deadlines is that sometimes colleges will say the deadline is June 1st. They will be filling those seats before then,  so for colleges that may have a very late regular decision deadline doesn’t mean that you can apply on May 31st still find seats available. It’s a point to keep that in mind when your student is scheduling when to submit applications.

Do you have questions about application deadlines and helping your student get into their dream school? Application deadlines can make a big difference in terms of what you could end up paying. In some cases, it can also make a difference as to where your teen gets admitted. I look forward to hearing from you if you have any questions or thought about the process!

If you’re a parent of a high school student preparing for college, I have created a free online training class that answers the most common questions I get from parents: “How to Find The Right College.” It offers insight into the college application process as well as how to get money for college. You can check it out and register for it HERE.

College Tips for Freshmen in High School

9th graders preparing for college early

I have a critical question for high school freshmen: have you started preparing for college life yet?

For ninth graders, college can feel like a lifetime away—many freshmen will not only say they haven’t started early college prep, but they also thought it was too soon to do so!

But we all know life moves fast. Before we know it, high school freshmen become college freshmen.

When the time between ninth grade and college is utilized wisely, we see increased admission rates and a smoother transition to college life.

With that in mind, I’ve compiled five important tips for freshmen in high school to prepare for college.

I’ve previously shared tips for helping ninth graders get into the best college and what parents should know about getting their ninth grader ready for college.

With these tips, students will not only help themselves get admitted but also make sure they’re prepared for what life is like once they’re in college.

1. Learn a new language.

Ninth grade is an excellent time to start learning a new language.

That way, you’ll have four years of foreign language experience, which many Ivy League or Ivy-equivalent institutions expect.

Foreign language mastery is not only a way to help boost your chances of getting into the college of your choice, but for many schools, it’s a requirement.

Some other schools only expect two or three years of foreign language experience, but starting in grade nine is never a bad idea!

2. Get involved in your school community.

Involvement in your highschool community not only looks great on college applications, but it can also prepare students for college life and being involved in that community.

Find ways to immerse yourself in the school communities that interest you—there’s no need to do activities just because you think they’ll look good on your application.

Instead, you can find activities, groups, or clubs that excite you, and accomplish two goals at once—gaining experience and having fun!

3. Establish good relationships with adults.

Ninth graders should get to know their teachers, guidance counselors, and other adult leaders in their lives.

This is beneficial for two reasons.

  1. When ninth graders begin to establish these relationships early, they’ll feel more comfortable asking for recommendation letters later on in high school, and the recommendation will be well-informed.
  2. It helps students prepare for dealing with professors and other adults they’ll encounter during their college experience.

4. Read every day.

We all know that college will come with a lot of reading, as does high school.

To prevent a rude awakening when you start college, begin to read every day in ninth grade for at least half an hour if possible.

Not only will this help prepare you for all the reading you’ll do in college, but it will help you excel on the reading portions of exams.

5. Learn when to ask for help.

During the high school and college years, there are bound to be times when you could use some help with school and life.

Many students struggle not only with asking for help but knowing when to do so.

When they were younger, your child needed help with things like tying their shoes or getting dressed.

As they get older, they’ll need help with more complex issues or problems, including education guidance.

In some cases, a parent might not be the right place to get this help, which is why your child should learn to reach out for the appropriate support when they need it.

Encourage your ninth-grader to reach out for help, whether it’s with academics or other aspects of their lives.

Learning how and when to ask for help is an essential personal development skill that all students can benefit from. The sooner this skill starts to be developed, the better.

Of course, ninth graders are still kids, and their constant focus doesn’t need to be on preparing for college. But a little bit of work in ninth grade can ultimately make the rest of high school and the start of college go as well as possible!

Need a little more guidance?

For one-on-one support and other resources to help you or your child get into (or pay) for college, click here.

If you’d like to learn more about preparing for college and the college application process, you’ll want to check out these articles too:

7 Ways to Support Your Child During the College Application Process
Get In and Get Money: 5 Tips for College-Bound Juniors
The 5 Key Things Students Should Do The Summer Before Senior Year

3 Tips for Dealing with Rejection Letters from Colleges

Rejection hurts.

Let’s face it, any kind of rejection can be difficult to navigate. It can be especially painful when your application to a college you had high hopes of attending is rejected.

Here’s the good news…

As much as it might feel like your rejection letter is the end of the world – it most certainly isn’t! You’ve still got plenty of options for forging a path forward that will lead you to a successful and exciting college experience.

This article will help you to navigate the muddy waters of rejection and move into a more positive and productive mindset.

Here are three tips for dealing with rejection letters from colleges and creating a path for moving forward.

1. Allow Yourself to Feel the Loss

Pretending it didn’t happen won’t help. You’ve just experienced one of life’s setbacks – that’s the reality. And that’s all it is.

Allow yourself time to process and even grieve the loss of what you had hoped for.

Grieving a loss is natural—it’s also an important part of moving forward. And after a period of grieving, it’s time to move on.

Quick Tip: To help make the experience of being rejected from a college a little bit easier on you, remember to manage your expectations BEFORE you hear back. Remind yourself the college application process is incredibly competitive. If you don’t get in, it isn’t because you’re a failure, in other words . . . . It’s NOT about YOU!

2. Don’t Miss Out on Other Great Schools

Just because your top college choice might not be in the cards, doesn’t mean there aren’t other incredible colleges out there that you could attend!

Consider the things that made you the most excited about your top choice school and look for other schools with those same qualities that could still be a great fit for you. Don’t allow the disappointment of not getting into your top choice to overshadow the potential of other colleges being an excellent choice for you.

Likewise, you can check out the list of colleges that still have openings at the National Association of College Admission Counseling. Should you decide to any of these colleges, please also do everything you can to make your essay and application stand out so you’ll know you’ve done whatever you could to get accepted

3. Consider Your Options

When your application is rejected from a college, you’ve got a few options when it comes to moving forward.

But you know what isn’t an option?

Giving up!

Here are some of the things you can do instead:

  1. Consider taking a gap year to improve your application and try again next year.
  2. Remember there is the possibility of transferring down the road. You could attend another great school in the meantime and get some credits there. Eventually, you could transfer to your top-choice (of course this isn’t guaranteed).
  3. Channel your disappointment into motivation and excitement about another great school. Getting a new, stronger focus is going to be key to your success moving forward.

They say when a door closes a window opens. When it comes to your college experience, a window may be opening that leads to the best experience of your life!

Looking for one-on-one support and other resources to help you or your child get into (or pay) for college? Click here!

5 tips for college-bound 9th graders: What parents must know

college-bound tips for 9th graders

School is back in session!

The transition from middle school to high school is a critical point in your teen’s educational journey. 9th graders are part of a new community, and their teachers, school counselor, and administrators are there to help them explore this new journey!

As a parent, you may notice some of the emotional ups and downs that come with navigating a new school, making new friends, learning from new teachers, balancing new time and academic demands. I have been there with my own teens and go through it each year with my students . . . in other words, “I feel you”.

Freshmen may not understand the importance of 9th grade in the overall college admissions process yet, but it doesn’t hurt for parents to be informed. Parents can be helpful to their college-bound freshman without “taking over” or being accused of helicoptering. Here are my top 5 tips that parents can follow and still look good.

  1. Start a file of important papers such as test scores, report cards, articles, scholarship opportunities, etc. Although you are starting the file, please remember to give it to your teen well before junior year so that they can be accountable for tracking their progress.cornell campus

 

  1. Set aside time to meet with your 9th grader to develop their 4-year course plan. Mapping their courses for each year of high school will challenge them to set realistic goals and balance academic rigor with interests. Sign up for our monthly freshman roadmap and you will receive our Compass ReadiGuide for Course Planning.

 

  1. Emphasize the importance of building positive relationships with ALL of their teachers. Your teen will need teacher recommendations for summer programs, scholarships, and college applications. A challenging goal for your 9th grader may be to meet with 1-2 teachers each month. Taking these consistent small steps can lead to a positive relationship where your teen gets to know the teacher and the teacher gets to know your teen.

 

  1. Encourage your 9th grader to schedule a meeting with their school counselor. School counselors may have interest/career inventories, ACT/SAT practice tests, as well as information about summer programs or scholarships.

 

  1. Assist your 9th grader in finding fun and interesting ways to volunteer. Volunteering in the community provides an opportunity to develop a sense of care for others, learn your capabilities, broaden experiences, and grow interpersonal skills.

 


This brief checklist highlights what parents can do this school year. However, if you’re a busy parent like me, you may not remember these tips in winter. Perhaps a regular “check-in” reminder would help you stay on top. . .

What other tips for 9th-grade success would you suggest? Please post in comments below.

What 9th graders can do now to get into Best College

Attention 9th graders, the college may feel like a long way away. In some ways, it is. But, in more ways than one, it’s really not. College-bound 9th graders are part of the college admissions process, whether they know it or not. In fact, our firm starts working with many teens in their freshman year of high school.

Long before students start receiving college mailings, they can get prepared. 9th graders can take these three steps to get into the best college for them:

  • Get to know yourself – At the same time that 9th grade may be an exciting time socially with making new friends at school, it’s also a great time for freshmen to explore and find new things that they like and enjoy doing. This may mean checking out a new club at school, starting a hobby, or trying out a summer program in a new subject area. Self-awareness is key in knowing what you want for college!
  • Plan your courses for all four years of high school – Setting your schedule ahead of high school graduation is a great way to build a strong foundation of coursework. It will also help you see where there may be courses missing. In those cases, perhaps you could consider an online or summer course. If your high school offers an Honors graduation, the four-year planning will help with determining if that’s a path you want to pursue.
  • Develop good study and organization skills – It’s not too early to find ways to improve your study and organization skills. The coursework in 9th grade is typically more rigorous than 8th grade, so consider how you manage your time after school or how you take notes during class. There are note-taking systems, time management tools, and organizing techniques to try that can help you develop habits that will serve you well throughout high school and beyond.

Ninth grade can be a great year to jumpstart success in high school and getting into the best college. The journey begins with the student!

What other suggestions do you have for 9th grade? Please post comments and questions below

College Fit Finder: What does “College Fit” mean?

santa clara campus

During a recent talk to high schools, Peter V. Johnson, Dean of Undergraduate Admissions at Columbia University stated elegantly:

columbia-main-gate
Columbia University, where I almost attended!

“We do not admit statistics to an institution. We admit people to an educational community.”

His statement defines college fit which we have been hearing more and more about these days. Using a college fit finder can help students identify the best schools for their needs.

Student perspective on College Fit

There are 2 sides to this “college fit” coin. Dean Johnson intimates the importance of fit from the college’s side. On the other side of this coin, the student can select colleges based on fit. While I don’t have a pithy quote like Dean Johnson, I will share three aspects of college fit from the student’s side.

Three aspects of college fit that students can consider when developing their list of colleges are

  • Academic fit
  • Social/cultural fit
  • Financial fit

Questions to ask about these components may include:

  • Academic – Does this college have my major interest?
    What are the required courses for graduation?
    How long will it take me to graduate based on the course offerings and schedule?
  • Social/cultural – Will I fit in?
    Can I get the type of support I need within this campus community?
    What will I do on the weekends?
  • Financial – What available scholarships will make this college affordable for my family?
    What financial sacrifices must I make to graduate from this college?
    Am I OK with those financial sacrifices?

Students have the best chance of graduating on time when these areas of fit are considered up-front.

In the same way, colleges have the best chance of admitting students who will contribute to the quality of their communities when they ask the right questions about students upfront. If you want to see the questions that matter to a college, check out their essay questions. Those questions say a lot about the type of people they want to join their educational community!

Balanced Screen Time, Reading, and Online Behavior for Teens

In today’s digital age, parents face a myriad of challenges in raising well-rounded, academically successful, and socially responsible teens. From excessive screen time to a lack of interest in reading and navigating the complexities of online behavior, the struggles are real. This blog combines expert advice on how to encourage reading in reluctant teens, manage their texting habits, and promote appropriate online behavior.

How to Get a Child to Read When They Refuse

One of the most common concerns parents have is how to get a child to read when they refuse. Reading is a crucial skill that benefits teens academically and personally, but many teens lose interest in reading as they grow older.

Why Teens Stop Reading in Middle School

It’s not uncommon for teens to stop reading around the 6th grade. Several factors contribute to this decline in reading interest:

  • Increased Screen Time: With the rise of smartphones, social media, and video games, many teens find these activities more engaging than reading.
  • Peer Pressure: As teens become more socially aware, they may feel that reading isn’t “cool” among their friends.
  • Busy Schedules: Between homework, extracurricular activities, and socializing, finding time to read can be challenging.
  • Lack of Exposure to Engaging Books: Teens may not find books that interest them if they are not exposed to a wide range of genres and topics.

Strategies to Encourage Reading

If you’re wondering how to get a child to read when they refuse, here are some effective strategies:

  • Set a Daily Reading Routine: Encourage your teen to set aside a specific time each day for reading. This could be before bed, during a commute, or after dinner. Consistency is key to developing a habit.
  • Allow Them to Choose Their Books: Let your teen pick out books that interest them, whether it’s graphic novels, cookbooks, or even romance novels. The important thing is that they are reading.
  • Model Reading Behavior: Show your teen that reading is a valuable activity by reading yourself. When they see you enjoy reading, they are more likely to follow your example.
  • Read Aloud Together: Even though your child is older, reading aloud together can be a bonding experience and a way to introduce them to new genres or more challenging books.
  • Utilize the Library: Encourage your teen to sign up for a summer reading challenge at your local library. This not only provides motivation but also connects them with other teens who enjoy reading.

Teens and Texting: How to Manage Screen Time

Another challenge that many parents face is managing their teen’s texting and overall screen time. With the pervasive use of smartphones, it’s not uncommon for teens to spend hours on their devices, often at the expense of face-to-face communication and other important activities.

The Impact of Excessive Screen Time

Excessive screen time, including texting, can have several negative effects on teens:

  • Reduced Attention Span: Constant distractions from notifications can make it harder for teens to focus on tasks like studying or reading.
  • Impaired Social Skills: Relying on digital communication can lead to difficulties in face-to-face interactions.
  • Sleep Disruption: The blue light emitted from screens can interfere with sleep patterns, leading to sleep deprivation.
  • Increased Risk of Anxiety and Depression: Overuse of social media has been linked to higher levels of anxiety and depression in teens.

Establishing Screen Time Boundaries

To help manage your teen’s screen time, consider implementing these strategies:

  • Create a Family Screen Time Policy: Establish clear rules about when and where screens can be used. For example, no phones at the dinner table or during family time.
  • Set Limits on Screen Time: Use apps or built-in phone features to limit the amount of time your teen can spend on their phone each day.
  • Encourage Tech-Free Activities: Promote activities that don’t involve screens, such as sports, reading, or spending time outdoors.
  • Model Healthy Screen Habits: Just as with reading, your teen is likely to mimic your behavior. Make sure you are also following the screen time rules you set.

Encouraging Appropriate Online Behavior for Teens

In addition to managing screen time, it’s important to guide your teen in appropriate online behavior. With college admissions officers increasingly looking at applicants’ social media profiles, a single inappropriate post can have long-lasting consequences.

The Risks of Inappropriate Online Behavior

Teens may not fully grasp the potential risks of their online behavior. Here are some risks associated with inappropriate online actions:

  • Damage to Reputation: Inappropriate posts can harm a teen’s reputation, both socially and professionally.
  • College Admissions Impact: As noted, many college admissions officers review applicants’ social media. A negative online presence can affect a teen’s chances of getting into their preferred college.
  • Cyberbullying: Posting or sharing harmful content can contribute to cyberbullying, which can have serious consequences for both the victim and the perpetrator.
  • Legal Issues: Some online behavior, such as sharing explicit content, can lead to legal trouble.

Promoting Positive Online Behavior

To help your teen navigate the online world safely and responsibly, follow these guidelines:

  • Talk About Online Risks: Have an open conversation with your teen about the risks of inappropriate online behavior. Make sure they understand that what they post online can have real-world consequences.
  • Teach Digital Etiquette: Encourage your teen to be respectful and considerate in their online interactions. Remind them that their online behavior should reflect the values they hold in real life.
  • Monitor Their Online Activity: While it’s important to respect your teen’s privacy, it’s also wise to keep an eye on their online activity. This doesn’t mean reading every message, but being aware of the platforms they use and the content they post.
  • Encourage “Think Before You Post”: Teach your teen to pause and think before posting anything online. A good rule of thumb is to ask themselves if they would be comfortable with a college admissions officer or future employer seeing the post.

Conclusion

Balancing screen time, encouraging reading, and promoting appropriate online behavior are all crucial aspects of raising a well-rounded teen. By implementing these strategies, you can help your teen develop healthy habits that will serve them well throughout their life.

When considering how to get a child to read when they refuse, managing teens and texting, or encouraging appropriate online behavior for teens, remember that consistency and open communication are key. These practices not only help your teen succeed academically but also prepare them for the responsibilities of adulthood.

via Education Week: Bad Online Behavior Jeopardizes Students’ College Plans.