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Though financial aid is usually needed to help pay for college, there are many other ways you can make attending more affordable.
Saving
A great way to prepare for college is to start saving early, and to set specific and realistic savings goals. There are several different types of savings plans available with banks, credit unions, brokers, insurance companies and mutual funds companies.
One of the ways to save for college is with a section 529 college savings plan, such as Bright Start®. Savings plans allow you to put away money for the future, while earning money over time through interest. This is different from College Illinois!, which is a 529 prepaid tuition program that allows you to actually prepay tuition at a low, locked-down price, ensuring that you are not adversely affected by high tuition inflation, or the uncertainty of the stock market. Another way to save is through a savings account, which is the traditional way to save money in an interest-bearing account. You can also look into U.S. Bonds for virtually risk-free investments; Certificates of Deposit for short-term investments with low risk; mutual funds for low- to high-risk investments with a financial professional; and more. Talk with your parents about the best savings options for you and your family.
Jobs
In order to save money, you must first have money. Now is a perfect time to jump into the workforce. Getting and keeping a job not only helps you earn money, but also teaches you a lot about responsibility, areas that might interest you in the future, business skills and more. You’ll be amazed how much you can learn while working. And the experience you get during your job(s) can help you when you’re looking to start your career after college.
Taxes
Being in college can be advantageous when it comes to your taxes. Check out the IRS Web site for more information about tax benefits for education.
Credit Cards
Another source of “money” that can help you during college is credit cards. A credit card is ideal in emergency situations when you don’t have cash at the time you absolutely need it. However, a credit card can be dangerous to use, as interest is usually very high, and keeping a balance on a card could lead to financial trouble in the future. Talk with your parents about applying for and using a credit card. For more information about credit and credit cards, check out the University of Illinois Extension Credit Card Smarts Fact Sheets.
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