Find extra money for college

Tips for finding extra money to save for college

• Maximize child-related “found” money. This is money you no longer need for child-related expenses. For instance, when your child stops wearing diapers, declare “diaper freedom day” and save that money. Or as your children begin school, turn the daycare money into college savings.
• Maximize other sources of “found” money. Turn your income tax refund, paycheck raises, and inheritances into savings. Another source is money you no longer need to pay off a loan (e.g., car payments). You’re doing without that money now, so put it to work for your child’s future.
• Practice the little by little method. It may be easier to make multiple, smaller contributions to your college savings account, rather than a single, large contribution. Start with $15 or $25 a month—it can add up over time.
• Save for college automatically. Make saving a priority. Deposit your budgeted college savings contribution from your paycheck right away, or set up an automatic debit plan. That way you’ll be less tempted to use it for other purchases.
• Find tax advantages where you can. 529 college savings plans, Coverdell Education Savings Accounts (ESAs), and other college savings plans offer tax breaks that can help your money go farther.
• Give yourself an annual financial check up. If you have a financial advisor, be sure to include college savings in your family’s plan. If you don’t have a financial advisor, sit down once a year and see how your budget is holding up. Are you spending money on things you’re not really using?
• Find ways to save even more. There are credit cards and services that let you earn cash back when you shop, eat at restaurants, and more. One is Upromise^® by Sallie Mae. If you’re making purchases anyway, put them to good use and earn cash back for college.

And one "don't" tip.

• Don’t use retirement savings for college! There's a wise saying, "You can borrow for college, but you can't borrow for retirement." Save what you can, but don't leave yourself without retirement funds in the years to come.