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Preparing for Financial Savings before College

Schooling can be an expensive but fruitful endeavor. Trying to save for college can have a profound impact on the amount of expenses you have. Setting aside some money for college things can help you save on student loan debt and give you a better platform for after college when you need to save for other expenses. School is already expensive and will continue to get even more expensive. There are ways for both parent and student to save to allow for less of a financial burden once college rolls around. Try some of these tips for parents or students to prepare for the financial avalanche of college.

Parents:

  1. College Fund – Start saving for your children’s college fund as soon as possible! This can include an Education IRA or a 529 plan. These plans offer advantages and disadvantages, and it is best to consult with a financial professional to see which option is best for you.
  2. Savings Account – Two Rivers Bank & Trust offers the Banker Savings account for ages 17 and under which can help your child grow the initial deposit into preparing for their future. The account converts into a regular savings account when the account holder turns 18 so they can continue saving during and after college.

Students:

  1. Scholarships – Apply for any scholarship that you are eligible no matter the money value of them, they will add up! This is money you won’t have to pay back, which means less loans. If you excel in a sport, academics or extracurricular activities try to be rewarded for it!
  2. AP Classes – Many high schools offer advanced placement classes, giving students the opportunity to earn college credit while still in high school. Every class taken is one less you must pay for in college, so talk with an academic advisor to see which classes are right for you.
  3. Summer/Part-time Job – Taking a summer job or a part-time job during the school year can help you save money for college. The work experience also gives you something to include on a resume which colleges often look at as well. Put money away to allow yourself breathing room when you get to college.

College is an extremely expensive endeavor and the sooner you save the better your future finances will look. Planning for college and understanding that by preparing together as parent and student, will help you save for college and prepare you for what comes next. Establishing these helpful money habits early on will also help your student with finances later in life.

Understand that most people won’t save enough to pay for college once they reach the age to attend college. It is expensive and there are many costs that either you don’t think about or come about randomly and saving early can help prepare you for these. Know that loans are not the end of the world, but the more you take out the more you’ll have to pay back in the future.

Two Rivers Bank and Trust can help manage your finances, to ensure that you are saving for college. Check us out online or stop into your neighborhood Two Rivers Bank and Trust, to let us help you start saving smartly!