Tag Archives: money for college

financial planning

Establishing a Saving Strategy

saving strategy

One of the key elements of adulthood is learning to save for the future. Before your student leaves for college, it’s crucial to teach them how to manage money and save for the future. They will be bombarded with opportunities to spend, making saving a low priority. There will be the usual college expenses, entertainment and the temptation to frivolously spend while they are in college.

As their parent, you know the importance of saving for college and continuing to save for retirement. You can set an example by your actions and encouraging them to establish their own saving strategy. If you help them set up a savings account before college, it will be routine for them to put a portion of their earnings in the account during college; and, it establishes a good saving strategy after graduation.

Start in high school

CIT Bank can help you with their Savings Builder account. You can start an account for your student while they are in high school with as little as a $100 deposit. The savings you accumulate can be used for textbooks and any additional college expenses after high school graduation. Just a small monthly deposit of $100 quickly becomes $1000 and more to help your student with college expenses.

Here’s how it works

With $100 you can open an account with CIT Bank and earn up to 2.20% APY by making a single deposit of $100 or more every month. By using this online bank, it’s easy to grow and preserve your savings safely and securely because they are FDIC insured. There are no opening, monthly servicing, or line transfer fees.

You can easily access the funds in your account using free electronic transfers between your savings account and any other account at another bank; or, you can call and a check will be sent in the mail for free.

You can open a Savings Builder Account with CIT Bank by:

  1. Entering your information online
  2. Funding your account with a minimum of $100 with an electronic transfer or check
  3. You will receive an email confirmation and you are ready to start saving

The benefits of a saving strategy

By establishing a savings strategy for college, you are not only saving for those college expenses, but helping your student see the value and the benefit of putting money aside for the future. As the savings grow (with interest), you are teaching your student good money management and setting them up for financial success in the future.

college costs, college planning, parenting, Uncategorized

That all-important "money talk"

 

scholarshipsIt’s never too early to talk to your teens about college costs and what is expected of them once they take that much anticipated journey. If they understand the family’s financial situation and know what they will be expected to contribute towards college costs, they can start planning ahead by working during the summers and saving (Note: just make sure they put those savings in the parents name for financial aid award purposes).

According to a recent article about talking with your kids about college costs, kids are acutely aware of their need to contribute :

Despite the continuing cloudy economic forecast, one thing is crystal-clear: College costs continue to climb. And it’s made many students acutely aware. In a recent Fidelity Investments online survey of U.S. high school seniors, a majority said saving for education was “overwhelming.” Good news for parents: 94 percent of students were willing to pay for at least some of their college costs; 56 percent of those said their share should be half.
When having the conversation, however, make sure it’s just that–not a lecture. Approach it as a collaborative discussion and use this as a start to helping your teen understand the importance of budgeting and “needs vs wants”.  Here are just a few bullet points highlighted in the above mentioned article:
  • Start off by making sure your teen knows what a “need” is and what a “want” is in relation to college costs. For some teens, all wants are needs. This is the time to nail the definition down and clarify it in their minds.
  • Decide just who will be paying for each college expense. Every family is different but it’s important to make this clear from the very beginning so that there won’t be any surprises.
  • Use a budget worksheet and understand ALL college expenses. Don’t just assume that tuition, room and board will cover it. Check out my article at Smart College Visit for a list of some of those unexpected college costs.

When your teens contribute to the costs of their education, they will be more invested in their success. They will also learn valuable budgeting lessons that will stick with them past college and into adulthood. You’re doing your teen a disservice if you don’t involve them in the college financial discussions. They need to be active participants in the decisions and also play an active part in paying for that high-cost college education.

Many of the college debt disasters in the news recently might have been avoided if the parents had sat down with their teens and had the “money talk”. Don’t let your teen walk across that stage at graduation and be clueless as to how to budget and be a financially responsible adult. It’s your job as a parent college coach to prepare them for a financially stable future.

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college costs, college planning, scholarships

Frame My Future Scholarship

frame-my-future-scholarship

I’m always on the lookout for scholarship opportunities for college-bound teens. And when I find one that doesn’t require an essay, I’m ecstatic. Why? Because there is always that student out there that is loaded with creativity, but not the best wordsmith.

Frame My Future Scholarship, sponsored by Church Hill Classics, asks applicants to “upload an original creation that shares with us what you want to achieve in your personal and professional life after college.  The main guideline is that your creation must be submitted within one image, in a JPEG format.” This allows for creativity to abound because images can be photographs, collages, a scrapbook page, a poem–just as long as it’s a single JPEG image that can be uploaded.

This year’s scholarship contest is coming to a close, but there’s a link on their site to VOTE for one of the top 24 finalists (give these creative college-bound teens some votes) AND a link to  sign up to receive information on next year’s scholarship. What could be simpler?

As always, I recommend you keep a scholarship file (either online or in a folder) with all your scholarship finds so that when the time arises to apply, you won’t forget about a single one!

Kudos to Church Hill Classics for coming up with this unique scholarship!

college costs, scholarships

Scholarship Alert: Essay Contest for 2010 Seniors

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fire-logo1

FIRE’s Freedom in Academia Essay Contest

2009 Awards
One first place winner will be awarded a $5,000 college scholarship.
Two second place winners will each receive a $2,500 college scholarship.
Five runners-up will each receive a $1000 college scholarship.

Deadlines
The final day to submit an entry is November 6, 2009. The winners will be announced on December 11, 2009.

FIRE’s Mission
FIRE’s mission is to defend and sustain individual rights at America’s colleges and universities. These rights include freedom of speech, legal equality, due process, religious liberty, and sanctity of conscience?the essential qualities of individual liberty and dignity. FIRE’s core mission is to protect the unprotected and to educate the public and communities of concerned Americans about the threats to these rights on our campuses and about the means to preserve them.

Click here for all the scholarship details!

college costs, scholarships

What Can You Do? Scholarship Video Contest

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filmakingIs your college-bound teen a budding videographer or filmaker? The Campaign for Disability Employment is sponsoring a video contest for a $1500 Scholarship. The contest asks applicants to make a video on best practices within the workplace that allow every employee the opportunity to contribute, specifically fellow co-workers with a disability.

This is a perfect opportunity for your creative teen to use that creativity and win a scholarship. Since there’s no age limit, anyone can create a video and upload it for submission.

The deadline is July 15, 2009, so don’t procrastinate and encourage your teen to get their creative juices flowing!

Click here for rules and entry information.

college costs, extracurricular activities, scholarships

Scholarship Q & A

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Question: Is it worth my time to apply for scholarships?

It is if you want FREE money. Because that’s what scholarships are: FREE money. The key is to apply for those scholarships that “fit” you. Each scholarship is looking for students with specific qualities. If you meet those, you’ll have a much better chance of winning the scholarship.

Question: I’m not the best student. Is there a scholarship out there for me?

Absolutely. Many scholarships aren’t based on grades, but on specific criteria. Many are essay contests. Many are based on heritage or affiliation. Many are based on specific talents or abilities. So even though you’re not a “straight A” student, there are scholarships out there that would be a perfect fit for you.

Question: Do I  have to have a long list of extracurricular activities to win a scholarship?

The great thing about scholarships is that you can distinguish yourself by being focused on a particular activity. It’s not how many you have, but what you have spent your time on during your teen years. If you communicate your strengths (such as working all throughout high school), you won’t need a long list of activities.

Question: Are all scholarships the same?

Absolutely not. Scholarships are as varied as people. There are scholarships for academics, writing, inventing, music, lineage, creativity, geographic residence, and the list goes on and on. As I said previously, finding the ones that “fit” is the key to success.

Question: What is the easiest way to find out about scholarships?

Go online to scholarship sites (you can find some on my TOOLS page) and register. Ask your counselor. Visit your local library reference desk.

Sign up for me FREE Ebook for many other suggestions!

college costs, scholarships

Scholarship Alert!

FastwebNo time to waste! Here’s a scholarship opportunity for 17-18 year olds. $500 will pay for any number of college expenses.

What: This contest asks you to answer one simple question in 250-350 words: “What’s the best way a student can manage their money in current economic times?” Judged by FastWeb’s own Financial Aid Guru, Mark Kantrowitz.

How Much: Two winners, $500 each.

Dates: Contest begins May 25, 2009 and ends June 22—no entries will be accepted after Monday June 22, 2009 at 11:59 p.m. central time.

Winners Announced: June 29 on FastWeb. Winning essays will be featured on the site!

Who’s eligible: If you’re 17 or 18 years old, have a 2.0 GPA and up, and are enrolled full time in a high school or an accredited college/university, you’re eligible. In fact, just to make it fair, we’ll select one winner from the 2.0-2.99 GPA range and the other from the 3.0 – 4.0 range. Regardless of your GPA, there’s no reason NOT to enter!

Who’s footing the bill: This contest is sponsored by FastWeb and Bank of America. How to Enter: Email your essay on the topic: “What’s the best way a student can manage their money in current economic times?” to EssayContest@FastWeb.com.

college costs

In College, the Little Things Can Add Up

It’s a given that the greatest college expense will be tuition, followed by room and board. But it’s the little things that can add up. If you’re budgeting for college and have all your ducks in a row regarding the BIG expenses, you might want to take a pencil and budget in the little things. You’ll be surprised how the nickels and dimes can add up to hundreds.

  • Transportation-Most campuses do not allow freshmen to have cars. If they do, consider doing without. You can most likely find everything you need on or near campus. Consider buying a bus pass or walking. It’s the easiest way to pare down the expenses.
  • Communication-Compare cellphone plans and make sure you’re signed up for a plan that allows you to have unlimited texting and free conversations with your friends and family. Keep track of your minutes and don’t go over.
  • Computer-Many schools college-costsrequire students to have a personal computer. Shop around for one with a wireless connection so you can use the campus ethernet. Buy it when there are sales and bargains and verify that a good warranty is attached.
  • Insurance-If your family has health insurance that covers you, make sure the college doesn’t tack on those extra charges to your tuition bill. It’s not a bad idea to get some sort of content coverage for your dorm room. Things tend to “disappear” on crowded college campuses.
  • Tuition-Stay on track and make sure you finish your education ON TIME. Additional semesters, hours, etc. will increase your tuition and add extra costs when they are unnecessary.
  • Food-If you eat regular meals, the college meal plans are great bargains. If you don’t, and your college will allow you to opt out or pick and choose, you might save money by doing so. My daughter rarely used her plan and we found it was an unnecessary expense.

These are just a few ideas that might help you save some cash during your college years. As a parent, you’ll appreciate the chance to keep some of your hard-earned money in your pocket.

If you’ve got a hint I haven’t touched on please comment here. I’m sure our readers could benefit from any and all suggestions.