Financial times are tight when you're a single mom. When you are a single working mother saving for your kid's education, it means double duty at not only providing a financially secure and safe environment for your child and yourself, but you also have to think about your future and theirs. There are many ways that a working single mother can provide a sound financial future for their child's education, but as with some things you may have to look for them.
A good budget is the first place to start when you're looking at saving for a child's education. You have to know where the money is coming from by knowing what finances are coming in and what finances are going out. Start with a balance and know how much you have any certain month, and where you want to spend the extra money that has come in. Add extra money say a hundred dollars every month with a part time business. Take that hundred dollar paycheck that can be earmarked and at least twenty percent of it can go into your child's education fund. Twenty dollars doesn't sound much like much now, but there are some programs in some states that allow you to put the money into a college savings account like an IRA or a 529 plan. When the child is ready to start college the money would have matured and gained a substantial amount of interest.
Talk to your financial aid officer at school. They are probably knowledgeable about college savings programs. If you have a college picked out for your son or daughter, you can even invest into that college by retaining the tuition at today's cost instead of paying for the tuition at the cost of the university in twenty years. With the growing interest in obtaining a college degree in America these days, this is your best bet. The ever climbing tuition rates will far exceed any interest you will earn in an interest-bearing savings account.
If you are at a time in your financial life where you get an extra tax refund or some other money, put a good portion of that toward the child's education account. It's too easy to go and plan shopping when you have a large amount of cash. It is best to put half the money into the saving account and then go treat yourself. Take yourself and your child on a nice trip that only a single mom and her children would enjoy. Find something nice for the house that you and your child can do together or maybe even spoil yourself some. Go out with some friends and have a good time for an evening but make sure to save and invest some too.
Remember, if you are experiencing hard times going to school yourself right now because of your parent's lack of knowledge and a savings account, you don't want your child to go through the same hard times. Set your budget and look at your finances today. Find an account that will have a high bearing interest or a pre-paid tuition program at a local college or university. Without this solid financial planning, you will not be able to cope. Your best choice is to be on your guard by planning for your child's future, so they can get to school and obtain the education they deserve.
Lana Hawkins is the author of Mom Pays for College blog. If you're a single mom that needs to finance an education get this free audio and report that reveals 6 ways single moms can pay for college. Open for everyone. |
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