With the cost of higher education, struggling to pay for college is something that many go through. But with a bit of planning, there are ways to make paying for college more doable. To help you save and manage expenses for college, we're sharing a few money-smart financial tips.
Start Early
When it comes to saving for financial goals, especially large ones, like saving for college, starting as early as possible gives you an advantage. Having more time to save allows you to better prepare for the costs that come with higher learning and discourages you from borrowing more than you have.
Open a Separate Savings
It's easy to spend money when it's kept in one place. To discourage you from dipping into your college savings, start a designated savings account for your college savings to keep those funds separate from your other finances.
Automate Your Savings
Make saving easier by having a portion of your paycheck deposited automatically into your college savings account for you or your child. This ensures that you "pay yourself first" so you don't have to remember to transfer money to your college savings. With the funds automatically withdrawn from your paycheck, it's easy to pretend it was never there to begin with, so you don't inadvertently spend it.
Take Advantage of Compounding Interest
Compounding interest is a powerful concept when it comes to saving money. It means earning interest on your interest. While starting your savings early is beneficial to growing your savings, another important key to saving money is leaving it alone. Don't minimize the effect of compounding interest for your college savings account, by resisting the urge to make withdrawals.
Ready to Start Saving Toward Your Financial Goals?
Our financial service representatives at Members First Credit Union of Florida are here to lend a helping hand. Whether you want to start saving towards college expenses, a new home, your retirement, or preparing for emergencies, a savings account can help you reach your goals. Learn more about our savings options or speak with a financial representative to learn more or get started.
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