General School Savings Tips

The “back to school” shopping season isn’t the only time to prepare for school expenses. If you truly want to save on costs, you must follow a daily school savings plan. The money you save each day will add up through the year. These savings can then be used for college savings plans. It will be easier to cover the cost of higher education by the time your children reach college.

In a personal school savings plan, day-to-day goals are more effective than weekly targets. It will help you assess daily expenses better and make it easier for you to avoid unnecessary expenses. Here are some school savings tips to keep in mind:

1. Minimize Credit or Debit Card Spending – Using credit cards will often add interest costs that will hurt your daily savings in the end. Try to live on a cash basis. If you can pay in full, do so. It takes discipline, but the less interest you incur, the more you save. If you’re using a debit card, avoid using the overdraft feature (if it is available).
2. Avoid Impulse Buying – If you feel that you have to use your card, avoid impulse buying. Some items may look useful, like a brand-new vacuum cleaner or an induction cooker, but it would be good to think about the purchase for at least a day. Talk to your family about it and see if it really is needed. Most of the time, you’ll find out that the item you like may not be such a great buy after all.
3. Save loose change – Don’t forget the little things. Fifty cents may not seem like much, but a piggybank full of loose change will still add up when you put it in your bank account at the end of the year.
4. Track your spending – List down your expenses every day. At the end of each month, compare this list to your bank statement, credit card records and other similar papers. Ask yourself if there were ways that you could have put more in your savings instead.

Sign up on the box at the right to see what other school cost saving options are available to you.