Raising children can get expensive due to the costs of food, clothing, shelter, and healthcare. One of the many challenges you face as a parent is saving for your child's education, which can feel daunting. Couple rising education costs with the increased cost of living, and saving for your child’s education is more difficult than ever.

However, saving for your children's academic future is within reach if you set education goals, begin saving early, and select a savings plan that works for you. The following article from Fast Auto Loans, Inc., outlines five financial planning tips for saving money for your child’s education. We also outline how an online title loan can help you pay for financial emergencies rather than dipping into your child’s education savings.

What Are Five Financial Planning Tips To Save For Your Child's Education?

The increased cost of living for Americans has led many to worry more about their savings. This can include putting away expendable income for a rainy day and working side hustles to earn extra money. One thing parents must worry about saving money for is their child’s education.

Every parent wants their children to have the best education possible from pre-school until college. To accomplish that, they must save money that can go towards paying forwarding their child’s education to set themselves up for success as adults.

The following are five financial planning tips to save money for a child’s education:

1. Set Educational Goals For Your Child’s Education

Educational goals for children must be clear for parents to reach them. Parents should determine the educational path they want their child to go on before beginning to save. This allows them to be honest about how much money they’ll need to save for their child’s schooling. Whether it's money to send your child to a private school or cash for them to attend a prestigious university, you need to know the goal before you start putting money away.

With your ambitions clear, you can start looking into the annual costs. Knowing the price range is helpful for setting clear, attainable goals. Thorough research is vital here, so look online or call schools to get a sense of current rates and projected increases. 

As your child ages, they will determine what path they want to take for their education and learning. Planning early on by saving money gives them the option to pursue higher learning when they graduate high school.

2. Begin Saving Money For Your Child’s Education Early

As the saying goes, "Time is money." This is especially true for meeting education costs, so we recommend starting to save as early as you can. The longer you have before your child needs the money, the longer your money can grow for you. This tends to happen through compound interest in your savings account, but it could also happen through a diversified investment portfolio.

Whichever financial vehicle you put your money in, don't be disheartened if you can only save a small amount every month. Starting early provides the perfect opportunity for your savings to grow over the years. Use financial calculators online to discover how much small amounts can grow over five, ten, or fifteen years.

3. Select The Best Savings Plan For Children Education

There are tons of savings vehicles for your child's learning fund. You can easily set up a standard savings account at your bank, where you can store money while earning minimal interest.

A 529 plan is a savings plan designed for a child’s education fund. Parents can contribute to the plan, and states offer tax deductions and credits for contributions. You can also withdraw from this account without needing to pay federal income or state taxes. A custodial plan allows parents to contribute to the plan until their child reaches maturity (likely 18-21), when the child can use the funds to pay for their education.

Make sure you do thorough research, as they all have upsides and downsides. If you're ever in doubt, check with a financial professional.

4. Getting A Side Hustle To Pay For Your Child’s Education

Many parents may struggle to save money for their child’s learning using their own income. That has to go to paying for food, shelter, gas, rent/mortgage, utilities, etc. However, they can start working a side job to earn extra money for their child’s education savings.

Some examples of side hustles include freelance writing, walking dogs, doing odd jobs, driving for Uber or Lyft, or working for a meal delivery service. You can put the surplus cash from these jobs into the child education savings plan and watch the money grow.

5. Seeking Benefits And Scholarships To Pay For Your Child’s Education

Some employers offer education savings plans with matching contributions. This can allow you to grow your child’s education savings plan with help from your employer. Their contributions can augment the money you save to build a greater fund for your child’s education savings.

You can also prepare for your child’s education by seeing how much they can earn in scholarship money. If they decide to go to college, reach out to universities to see what scholarship opportunities they have to save money on tuition. You can use this information to adjust your savings plan and determine how much their tuition could cost.

Don't Use The Education Fund For Financial Emergencies

When life throws you curve balls, you may be tempted to use the money earmarked for your child's schooling to pay for the emergency bills. You should instead use your own emergency fund money to prevent affecting how much money your child has for their education. 

If you do not have an emergency fund or your emergency fund isn't big enough to cover the cost, you aren't out of options. You can turn to Fast Auto Loans, Inc. for title loans or registration loans. They give you access to money quickly when you need it most, but the one you can qualify for will depend on your car ownership status:

• You own your car outright—A title loan is an option. To qualify, you'll need a lien-free title, your vehicle for an inspection, and your state-issued identification. We use your vehicle's value to determine your eligibility. The more it's worth, the more you can borrow (between our lending limits of $300 and $15,000).
• You do not own your car outright—A registration loan is an option. It's unique to Arizona and allows you to borrow using your vehicle registration, not your lien-free title. To be eligible, you'll need the registration, ID, social security number, and an active checking account. Our lending limit for a registration loan is up to $900.

Cover Emergencies with Fast Auto Loans, Inc. Right Now!

You can save money for your child’s academic future by setting goals, choosing the right savings plan, starting early, getting a side hustle, and seeking benefits and scholarships. If a financial emergency arises, leave the education fund alone and seek financial help through an Arizona title loan or registration loan.

Complete the easy-to-understand online inquiry form on the Fast Auto Loans, Inc. website and hear from one of our loan representatives on the phone. They can guide you through the approval process and help you receive the emergency cash you need for your urgent bills.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.