Being in college is a new experience for most young people, offering a mix of challenges and excitement. Many things change, and for most college students, this is something they’ll need to adjust to. Becoming an adult means your child will receive a lot more responsibility, one of which revolves around finances, of course.
There are multiple reasons why students want to make more money, but they’re often limited by what kind of jobs they can take. A common approach these days is writing, mainly because of the flexibility. With this in mind, here are a few ways in which your child can earn money as a writer while enrolled in college.
Freelancing has become quite popular in the past several years, leading us to a point where many consider it their profession. Among the many professions you can commit to as a freelancer is writing. As long as your child is good with words and can craft great content, this is a good option.
There are multiple platforms to utilize for this approach, meaning there are plenty of options. The most important thing with this approach is to have a good portfolio, allowing them to showcase their work. They may need to consider some smaller gigs or write for free to have some of the content published under their name.
Start Blogging
If your child is good at something, they can utilize that knowledge and start a blog. While initially, that would seem like an online journal that people can read, with enough traffic, they’ll reach a point where they can profit from it. It’s not the fastest way to make money, but it can be a steady stream. The best part is that your child can write about anything they want — travel, cooking, photography, etc.
Creating and running a blog requires a bit of work, so they’ll need to be committed to it. They’ll need to figure out what niche they’ll cover and the type of content they’ll publish. Be organized, and make sure they’re posting regularly to keep the momentum going. They can also utilize social media platforms to expand and promote the blog, which can help them bring more traffic.
Proofreader and Editor
Some people aren’t massive fans of writing, but are still good with words, so the alternative to that is aiming for proofreading or editorial projects. While it is technically in the same niche, they’ll be doing the work from the other side. Other people would write the content, and they’ll go through it, ensuring it’s all good before it goes live.
There are many options here, from proofreading books to working as an editor for a newspaper or a website. Another popular option, especially for beginners, is to become a short story editor, mainly because your child won’t need a massive portfolio to get hired. Regardless of which option they choose, it can be a solid start to have some extra income as a student.
Content Creator for Social Media
Becoming a content creator on social media has become quite popular as the popularity of these platforms began to rise. Since we’re talking about writing, they can focus on writing the content or writing scripts for people who make video content. Both can work well, depending on how they want to approach this.
Social media can also be a good way to promote themselves and get more clients. Your child will need to target specific hashtags or access certain groups and if they do that right, they can get more clients, helping them boost their writing career.
Tutoring
Your child might be good at writing, but that doesn’t mean they should aim for writing-related projects. An alternative to this is going for tutoring or teaching assistance. The idea is that they help others with their writing, whether it’s just for one essay or more.
There are two options here that can help your child make money. They can work with fellow students on their college materials or with younger kids, helping them with writing-related assignments. The first option is to provide one-time help, so they’d make a single session and be done with it. The second option is to create groups and work with them on a consistent basis.
Self-Publishing
Advancements in the digital world have allowed many creatives to publish their work, which is another good option for making money as a student. The platforms are already available, so the only thing they’ll need is to start writing.
In many ways, this is similar to blogging, but the difference is in the money stream. Your child can write a book on a topic that they feel people would want to read and start selling it. If the book is good and they get good reviews, more and more people will want to buy it.
You’ll often hear that earning while in college is difficult. The reality is that it’s tricky but doable, especially if your child is good at writing.
Consider Writing Yourself!
Do you think you also have unique writing skills? You might consider writing yourself instead of handing these tips off to your student. Consider any one of the above options to give yourself an opportunity to earn money to pay for college. They can be extremely lucrative, and you can tackle them during off hours — that’s how I got started writing — after my day job was over!
FAQs
How to make money as a writer in college?
Making money as a writer in college involves leveraging your writing skills for various opportunities. You can start by contributing to campus publications, writing for blogs, or creating content for local businesses. Freelance platforms like Upwork and Fiverr also offer opportunities for writing jobs, such as copywriting, article writing, and proofreading. You could explore tutoring fellow students in writing or creating study guides. Some students even monetize personal blogs or social media accounts by writing niche content and generating ad revenue or affiliate marketing income.
How to freelance write as a college student?
To freelance write as a college student, begin by building a portfolio of your work. Create samples in areas like blog posts, articles, or academic writing. Then, sign up for freelance websites like Upwork, Fiverr, or Freelancer, where you can bid on projects. Networking with local businesses or reaching out to startups can also help you land clients. Be sure to manage your time effectively to balance coursework and freelancing, and start with smaller projects to gain experience and positive reviews.
What writing pays the most?
Writing that typically pays the most includes technical writing, copywriting for marketing campaigns, grant writing, and content writing for established businesses. Specialized fields like legal writing, medical writing, or ghostwriting for books can also offer higher pay rates.
The meaning of financial aid isn’t always clear to all families. In fact, many people believe that financial aid will cover the cost of college, but that’s not the cost for all. In my years of admission, I’ve seen situations where financial aid covered the cost of college in full, and I’ve seen situations where the only thing offered to students is $5,500 in student loans.
However, as a whole, undergraduates and graduate students received $240.7 billion in 2022-23 from all grants, federal loans, federal education tax benefits and federal work-study. The average aid per full-time equivalent (FTE) student in 2022-23 was $15,480 per undergraduate student and $28,300 per graduate student, according to the College Board.
Financial aid can seem like the most daunting hump in the getting-your-kid-to-college process. But what is financial aid, anyway? What does it entail? Don’t worry, it’s normal to be confused.
Let’s compare financial aid to baking a cake. The ingredients — scholarships, grants, loans, work-study and out-of-pocket funds — are combined to create a finished product: Your child’s final financial aid award.
Financial aid, which you may understand, is aid provided to help cover the cost of your child’s education. Scholarships are a part of financial aid.
Financial aid can include both money that needs to be repaid and money that doesn’t need to be repaid. Financial aid can come from various sources, including federal and state governments, colleges or universities, private organizations and banks. Financial aid helps make education more affordable by reducing out-of-pocket costs for students and their families. It’s a wonderful thing and one of the best ways to pay for college!
Types of Financial Aid
What are the different types of financial aid? Let’s take a look at the definition, eligibility and some popular types of financial aid.
Grants
Grants are money that your child does not need to repay. Eligibility for grants varies, but they are often need-based and might come from your state or the federal government.
Popular grants from the federal government include the Pell Grant and the FSEOG Grant.
Scholarships
Scholarships differ from grants because they are typically based on merit or other specific criteria. However, like grants, your child does not have to repay scholarships. Scholarships are not necessarily awarded based on need (but they might be).
Loans
Your child must repay loans with interest. There are two different types of loans: federal vs. private loans, and the terms, interest rates and repayment plans depend on the type of loans your child takes on.
Direct Subsidized and Unsubsidized loans: The U.S. Department of Education (through the federal government) offers two kinds of Direct loans to students: Direct Subsidized loans, which are based on need. The government pays the interest on subsidized loans while your child is in school as long as they attend college at least part-time as well as after the first six months after they leave school. Direct Unsubsidized loans are not based on financial need, and interest accumulates right away on Direct Unsubsidized loans. Students can borrow anywhere from $5,500 and $12,500 in Subsidized or Unsubsidized loans depending on their year in school.
Direct PLUS loans: Parents, this one’s for you! Parents of undergraduate students can get Direct PLUS loans (also commonly called Parent PLUS loans) for students, but those pursuing a graduate degree can also get a PLUS loan. This is a federal loan that requires a credit check.
Private student loans:Private student loans come from private companies, like banks and credit unions. Private loans might have variable interest rates and cannot be consolidated with Direct loans. These loans (which are typically more expensive than federal student loans) include terms and conditions set by the lender. Private lenders want to see a credit score to qualify. Private loans may only come in a variable interest rate (instead of a fixed rate).
When deciding between federal and private student loans, learn as much as you can, and if your child can do so, avoid them. Learn about repayment fees, interest rates (such as variable or fixed), when repayment starts and the total cost of the loan, including interest. Learn about any interest rate reductions as well.
Work-study programs are federal programs. Money comes from the federal government and goes directly into your student’s wallet. Students must apply for a work-study job on campus, and jobs might include working in the cafeteria, admission office, academic office or more on campus. However, note that work-study programs are not automatic — students must proactively apply for a job and go to work in order to receive a paycheck.
Of the above options, grants and scholarships are free money. Work-study is not technically free money, because your child must put forth the effort to earn it. It also typically does not go directly toward tuition — most colleges and universities pay your child. They must put it toward tuition and fees themselves.
Who Qualifies for Financial Aid?
Anyone can qualify for financial aid, which is why it’s important to apply for it, even if you don’t think your child will “get anything.”
Factors that affect financial aid for students include financial and other general eligibility for financial aid requirements, including:
Financial need, including income
U.S. citizenship or eligible noncitizenship
Enrollment status
Special circumstances (such as for independent students and veterans)
Your student will eventually receive a financial aid award letter from all colleges they applied to. When the letter will arrive depends on the school.
This is the confusing part for many families, and rightfully so. Each school follows a unique process in terms of dates, deadlines, procedures and awards. They even follow a different process for how they display your child’s aid! Your child might receive a financial aid award letter from various schools at different times of the year.
The amount of aid offered can cover up to the full cost of attending college. It will be broken down into three categories: free money they don’t have to pay back, earned money (typically work-study) and borrowed money (either from federal or private student loans).
It’s important to understand every aspect of the various financial aid awards and how they’re packaged, because it might be different compared to other financial aid awards your child receives.
There are several steps your child can take to get need-based or merit-based aid.
1. Apply for admission.
Your child can’t get scholarships from colleges until he or she applies. What type of admission does each college have? Rolling admission? Early decision? Early action?
It’s important to know each admission type, ensure your child follows all directions and applies well ahead of the deadline. Applying incorrectly (or late) could also directly affect your child’s financial aid opportunities.
2. Ask colleges about scholarships.
All colleges post information about scholarships on their websites. To get a full understanding of what a school offers, it’s a good idea to make contact with the admission office at each school. Colleges and universities can’t post every single scholarship they offer on their websites. Those lists are long!
For example, an alumna could have donated a scholarship for red-headed students education majors who like to knit. (Okay, that could be an exaggeration.) But there are dozens of scholarships that you might not know about unless you take the time to turn over every single stone at a particular college.
You probably want your child to apply for every bit of scholarship money possible. That means doing some extensive research online, in your community and through your school counselor’s office. There’s no one way to piece together the scholarship opportunities available to your kiddo. You can search in the following places, according to the U.S. Department of Education:
The financial aid office at the colleges your child plans to attend
Your child’s school counselor
Scholarship search tools — but make sure they’re valid
State grant agencies
Library reference section
Foundations, religious or community organizations, local businesses, civic groups
Organizations related to field of interest
Ethnicity-based organizations
Your employer or your kids’ employers
Pro tip: Ask colleges whether they offer scholarship competitions. Many do, and it’s a great way to earn more scholarship money.
4. File the FAFSA and (if required) the CSS Profile.
It’s important to file the FAFSA even if you think your child won’t qualify for anything. If the college requires the CSS Profile, complete that as well.
Two of the best ways to receive financial aid include filing the Free Application for Federal Student Aid (FAFSA), and if the schools your child is considering require it, the CSS Profile.
FAFSA Overview
The FAFSA is just like it sounds — a free application you file to determine whether your child can receive federal financial aid in the form of federal grants, loans and work-study. Colleges and universities also use the FAFSA to determine how much aid to award your child.
To complete the FAFSA form, all contributors (your student, you and your spouse if you are no longer married to your child’s other parent) must create a StudentAid.gov account using their FSA ID, ensuring their name and Social Security number match exactly. Once you gather necessary documents like tax returns and financial records, dependent students must include parent information, and you must accurately reflect marital or financial status changes. You and your child can sign and submit the form only after all contributors have completed their sections, with confirmation provided via email.
You can typically file the FAFSA on October 1, but recent lags in the new FAFSA simplification (which made the FAFSA shorter) have pushed out the FAFSA to December 1. You can still sign up for an account prior to December 1.
Should you file the FAFSA, even if you think your child won’t “get” any aid from it?
Yes! You must also file the FAFSA every academic year your child is in school or they won’t qualify for additional federal financial aid (including renewable aid they received the previous year). It’s usually easier to renew the FAFSA because the FAFSA stores your personal and demographic information.
CSS Profile Overview
The CSS Profile is also a free application, but it differs from the FAFSA. The CSS Profile is for institutional aid, not federal aid, and it asks more detailed questions, such as the net worth of small family businesses, home equity, medical expenses and more. It also asks you questions that do a deeper dive into your child’s income and assets.
You won’t pay anything for the CSS Profile if you make under $100,000 per year, if your child qualifies for an SAT waiver or if a student is an orphan or ward of the court under age 24. If you don’t qualify, submitting your CSS Profile to one college costs $25, and additional reports cost $16 each.
Not every school requires the CSS Profile, so check the list of participating institutions to learn more about whether the schools your child is interested in require the CSS Profile. The financial aid application process definitely lengthens when you file both the FAFSA and CSS Profile, but they can both help your child qualify for both federal and institutional aid.
5. Compare financial aid awards.
You’ve applied to several schools, filed the FAFSA, auditioned or interviewed for scholarships and attended scholarship events. Next, you’ll receive financial aid awards from schools. Sit down and compare them.
Be sure you do an apples-to-apples comparison. What does that mean? Let’s say you’re getting a $19,000 merit-based scholarship from College X and a $17,000 merit-based scholarship from College Y. That doesn’t mean that it’s necessarily cheaper to go to College Y.
What’s the full price for each? Figure that out, then subtract the amount of financial aid you’re awarded from each college to see which is cheaper.
Many families wonder if they’re doing “the right things” when they look into financial aid, so here are some of the most common financial aid mistakes to keep in mind:
Not applying early enough: Your child can start applying for financial aid early. In fact, it’s never too early to apply for scholarships! (My daughter received scholarships in fifth and sixth grade and I still look for opportunities all the time.)
Believing the FAFSA will cover everything: One of the most common FAFSA mistakes is thinking filing the FAFSA will take care of the full college bill. Filing the FAFSA does not mean it will cover all your child’s college bills. In some cases, the FAFSA will only offer federal loans. Don’t make the mistake of thinking that your ticket to financial aid involves filing the FAFSA, because it likely won’t take care of everything.
Not exploring all available aid options: Leave no stone unturned in your quest to look for available aid. This means creating a robust plan to look for scholarships, looking into merit-based scholarships and more.
Overlooking school-specific aid: Ensure you understand everything you need to do to apply for school-specific scholarships and other types of aid at each institution your child’s considering. For example, if a school offers a presidential scholarship, ensure your child knows how to apply for it if they qualify.
Learning how to avoid financial aid errors is one of the most beneficial things you can do for your student, and it can seem tricky because every school does things just a little differently.
Financial Aid Myths Debunked
You’ve heard the financial aid myths, like “only low-income students qualify for financial aid,” (ridiculous!) so let’s go over some of those. Steer clear of these dangerous ideas!
1. Only low-income students qualify for financial aid.
REALITY: Students of all income levels qualify for financial aid, whether it is merit-based, financial-based or other types of aid. Financial aid eligibility is based on various factors, not just income. Many families with higher incomes still qualify for aid due to their specific financial circumstances, especially due to the cost of attendance at different schools.
2. Only students with excellent grades get financial aid.
REALITY: While good grades can help with merit-based scholarships, financial aid is primarily need-based. Students from various academic backgrounds can qualify for grants, loans, and work-study programs.My family earns too much money, so I won’t qualify for financial aid.
3. Private colleges are always more expensive.
REALITY: While private schools often have higher sticker prices, they also tend to offer more generous financial aid packages. In some cases, attending a private school can be more affordable than a public university.
4. Applying for financial aid is a one-time process.
REALITY: You need to reapply for financial aid every year because financial situations can change.
5. Financial aid only comes in the form of loans.
REALITY: Financial aid can come in various forms, such as grants, scholarships, work-study and loans. Not all aid has to be repaid.
6. You should wait until you’re accepted to a college to apply for financial aid.
REALITY: It’s important to apply for financial aid as soon as possible. Most schools have deadlines, and aid is often distributed on a first-come, first-served basis.
7. Only U.S. citizens can receive financial aid.
REALITY: Many non-citizens, including permanent residents and eligible non-citizens, can qualify for financial aid. Some states and colleges also offer aid to undocumented students.
8. Scholarships are only for star athletes or high academic achievers.
REALITY: Scholarships are available for a wide range of criteria, including community service, hobbies, unique experiences or even being left-handed! Opportunities exist for so many different types of students!
9. Parent savings in a 529 plan will prevent financial aid eligibility.
REALITY: While savings in a 529 plan are considered in financial aid calculations, they have a relatively small impact compared to income. Most families are better off saving for college than relying solely on financial aid.
10. Financial aid packages are non-negotiable.
REALITY: In some cases, you can appeal a financial aid decision. If your family’s financial situation changes or if you receive a better offer from another school, you may be able to negotiate for more aid.
Maximize Your Child’s Financial Aid Opportunities
Understanding how this process works is the best way to establish as much control and your choices for financing college.
Most importantly, financial aid can come from a variety of sources: federal and state agencies, colleges, high schools, community organizations, foundations, corporations and more. Do everything you can to learn more about all your child’s opportunities and how it will help them in the future.
FAQs
What is financial aid and what does it do?
Financial aid can help your child tackle the costs of college. It comes in a wide variety of forms, and it’s truthfully like a puzzle you can put together to help pay for college. Whether it comes in the form of scholarships, grants or a small amount of loans, when put with the money that comes out of your pocket, it can make a huge difference in your child’s life.
Do you pay back financial aid?
Financial aid in the form of a loan must be paid back. You must repay federal loans after you graduate or stop attending school, with a grace period of six months after finishing school. Your child must also repay private student loans. Your child doesn’t need to repay other forms of financial aid, such as scholarships and grants.
Is all financial aid free money?
No, financial aid is not all free money. It includes loans, which your child must repay. For example, if your child receives federal student loans, they will have to repay them typically within six months after graduation.
As a parent, you’re probably no stranger to the financial strain college can impose. With rising tuition costs, fees, textbooks, and living expenses, it’s easy to see how many families feel overwhelmed. The idea of your child taking on significant student loan debt right out of the gate is unsettling for most parents. Fortunately, there’s a way to ease the burden: outside scholarships.
Outside scholarships offer valuable financial assistance to help your child cover college expenses without accumulating debt. But how do you, as a parent, guide your high schooler in finding and applying for these scholarships? The process can feel like navigating a maze, but with the right information and approach, it’s manageable — and well worth the effort.
This guide will show you how to support your child in securing outside scholarships, from discovering where to find them to crafting a winning application. Let’s explore the steps together.
Why Outside Scholarships Matter for Your Child’s College Education
While many parents are familiar with financial aid options like the Free Application for Federal Student Aid (FAFSA) for need-based financial aid like the Parent PLUS loan or school-specific scholarships like merit aid, outside scholarships are often an untapped resource. These scholarships are offered by private organizations, businesses, foundations or individuals, and they come with a number of distinct advantages.
First, outside scholarships aren’t tied to a specific college or university, so your child can apply to a wide range of opportunities, regardless of where they plan to attend. This significantly broadens the pool of potential aid.
Moreover, outside scholarships often have unique criteria, allowing your child to stand out based on talents, interests, or other characteristics. Some awards may be merit-based, while others may focus on extracurricular involvement, leadership, or community service. And many are not tied to financial need, so even if your family doesn’t qualify for need-based aid, your child might still be eligible for outside scholarships.
Simply put, these scholarships can help reduce your child’s reliance on loans and ease the financial stress for your family. But where should you and your child begin the search?
Preparation for the Scholarship Application
When applying for a scholarship, preparation is absolutely essential. It’s not just about submitting an application; it’s about presenting a complete and compelling package that makes your child stand out among the competition. To start, ensure that all the required documents are organized and up-to-date, including transcripts, test scores, and a detailed resume that highlights their extracurricular activities, community involvement, and any leadership roles. A well-crafted essay is also crucial, often being the key component that distinguishes one applicant from another.
The essay should be personal, insightful, and tailored to the scholarship’s focus, giving the committee a sense of your child’s passions, goals, and why they’re deserving of the award. Letters of recommendation are another important part of the application process. Help your child select recommenders who know them well and can speak to their strengths in detail, whether it’s a teacher, coach, or community leader.
Once everything is in order, it’s important to review the entire application multiple times for any mistakes or missing information. In addition to preparing these materials, it can be helpful to review past successful scholarship applications to understand what committees are looking for. For this, you can explore the resource Edubirdie docs page, where you’ll find a treasure trove of student notes, essays, and other academic documents. This page is a great place to see examples of strong student work, which can provide inspiration or a benchmark as your child prepares their own application. The more prepared and thorough your child is, the better their chances of securing that much-needed scholarship!
Where to Find Outside Scholarships
The scholarship search can feel daunting, but there are plenty of accessible resources to help your child get started. Here’s a list of effective places to look for scholarships that will make a difference.
1. Online Scholarship Search Engines
One of the easiest ways to start the scholarship hunt (and skipping the student loans!) is by utilizing online search platforms designed to match students with scholarship opportunities based on their background, academic performance, and interests. Some of the best websites include:
Fastweb: One of the most comprehensive databases of scholarships, tailored to each student’s profile.
Scholarships.com: Offers an extensive list of opportunities, along with helpful advice and tips.
Chegg Scholarships: Not only for textbook rentals, Chegg has a reliable scholarship search function.
Cappex: Known for its easy-to-use search engine and personalized scholarship matches.
Encourage your child to create an account and fill out their profile thoroughly. The more detailed their profile, the better the platform can match them with scholarships that fit their qualifications.
2. Local Community Organizations and Businesses
While national scholarships get a lot of attention, don’t overlook local opportunities. Many community organizations, local businesses, and even religious institutions offer scholarships to students in their area. These awards are often smaller but come with less competition, which increases your child’s chances of winning.
Encourage your child to check with local Rotary Clubs, Lions Clubs, and chambers of commerce. Small businesses, such as local banks and credit unions, also frequently offer scholarships. Reaching out to these organizations can pay off in unexpected ways.
3. High School Counselors and Financial Aid Offices
School counselors are often a gold mine of scholarship information. Many high schools keep lists of scholarships specifically available to their students or know about opportunities that aren’t widely advertised. Encourage your child to regularly check in with their school counselor or college guidance office for updates on outside scholarships.
If your child has already selected their prospective colleges, have them reach out to the schools’ financial aid offices to see if they maintain lists of external scholarships that their students frequently apply for.
4. Professional and Industry-Specific Scholarships
If your child is passionate about a particular field of study, there may be professional organizations that offer scholarships specifically for students entering that field. For example:
The American Institute of Architects (AIA) offers scholarships to future architects.
The National Society of Black Engineers (NSBE) provides financial support to students pursuing engineering careers.
The American Medical Association (AMA) has scholarships for students aiming for a career in healthcare.
Encourage your child to explore professional organizations in their field of interest — they often have scholarships designed to support the next generation of professionals.
5. Unique or Niche Scholarships
Scholarships come in all shapes and sizes, and some of the most interesting ones focus on niche qualifications or unique talents. Some scholarships are awarded based on seemingly quirky criteria, such as being left-handed or crafting prom outfits out of duct tape.
Here are a few examples:
The Duck Brand “Stuck at Prom” Scholarship: Awards students for creating prom outfits made entirely of duct tape.
The Vegetarian Resource Group Scholarship: Offers funds to students who promote vegetarianism in their communities.
The National Make It With Wool Competition: Rewards students who demonstrate skill in sewing or knitting woolen garments.
Encouraging your child to think outside the box can open doors to scholarships they might not have initially considered.
How Parents Can Support the Scholarship Application Process
Now that you know where to find scholarships, it’s time to focus on the application process. While your child will be doing the heavy lifting, there are several ways you can help make the journey smoother and more successful.
Scholarship deadlines can sneak up quickly, and missing just one requirement could mean losing out on an opportunity. Help your child create a spreadsheet or calendar to track deadlines, required materials, and submission dates. Keeping everything in one place will make the process much more manageable.
Every scholarship will have its own unique set of requirements. Some may request transcripts, while others will require essays, letters of recommendation, or specific formatting. Go over the instructions with your child to ensure nothing is overlooked.
Many scholarships require an essay as part of the application process, and this is where your child can truly shine. Encourage them to write essays that are personal, engaging, and relevant to the scholarship’s focus. Avoid generic responses. Scholarship committees want to know why your child is deserving of the award—and storytelling can make a big impact.
Essays are often the deciding factor for competitive scholarships, so this is where you can provide valuable support, whether that’s brainstorming ideas or proofreading drafts.
Some scholarships require letters of recommendation from teachers, coaches, or community leaders. Encourage your child to ask for these letters early, giving their recommenders plenty of time to write a strong, thoughtful endorsement. It’s also helpful to provide the recommender with specific details about the scholarship and a list of your child’s achievements to make their job easier.
Encourage your child to submit applications early, rather than waiting until the last minute. This will help avoid any technical glitches and give your child extra time for revisions if necessary. Make sure they double-check each submission for errors—scholarship committees won’t look kindly on typos or incomplete applications.
While helping your child through the scholarship process, watch out for these common mistakes:
Neglecting small scholarships: Smaller awards can add up over time, so encourage your child to apply for them as well.
Missing deadlines: Organization is key — don’t let an application fall through the cracks because of a missed deadline.
Overlooking follow-up: If your child wins a scholarship, remind them to send a thank-you note to the organization. This simple gesture can help maintain relationships and potentially lead to more opportunities in the future.
As a parent, supporting your child’s pursuit of outside scholarships can significantly reduce the financial burden of college. With the right resources and strategies, your family can unlock valuable funding opportunities that will help your child achieve their academic dreams without excessive student loans.
The key is to start early, stay organized, and encourage your child to pursue a range of scholarships, from local opportunities to niche awards. The journey may take some effort, but the potential rewards — a debt-free college experience — are more than worth it. After all, wouldn’t it be great to see your child graduate without a mountain of debt looming overhead and find ways to pay for everything beyond tuition, including room and board?
Your Child Can Get Outside Scholarships After High School
One of the most misunderstood ideas about getting outside scholarships is that many students think they can’t get them after high school, that they’ve “missed the boat,” but they can absolutely get outside scholarships after high school. I have a list of about 20 scholarships I want my current students to apply for after they’ve gone off to college!
Don’t give up on all the options, and take advantage of them. It’s never too late to achieve a debt-free degree!
Have you ever compared the tuition cost differences between in-state and out-of-state schools?
Did you gasp out loud when you saw out-of-state costs?
Yep, yep. It’s often thousands of dollars more expensive to go to an out-of-state university compared to an in-state university, and it’s because families don’t pay for these out-of-state institutions through their taxes, so their education costs are not subsidized and they receive higher costs.
It often makes students’ decisions easy. If your child’s comfortable with the idea of going to the flagship university in your state, he might think, “It’s cheaper, it’s close to home. Sign me right up.”
Should you migrate to your in-state university? Well, that depends! Don’t discount your neighboring states — and know a few things before you jump on the local state university bandwagon. Here’s what to know and how to get in-state tuition from out of state.
In-state tuition refers to the lower cost of attending a public college or university for students who are residents of the state where the institution is located. This reduced rate is offered because public institutions receive state funding to help cover the cost of educating students who are from that state. To qualify, students usually need to meet specific residency requirements, such as living in the state for a certain period (typically 12 months) before enrollment, or having parents who are state residents.
In-state tuition is generally much more affordable than out-of-state tuition, which is the rate charged to students from outside the state. State governments subsidize In-state tuition, making it more affordable for residents.
What is Out-of-State Tuition?
Out-of-state tuition refers to the higher cost that students pay to attend a public college or university in a state other than the state where they have legal residency. This fee structure applies to students who do not qualify as residents of the state where the institution is located.
Out-of-state residents are considered non-residents and do not qualify for in-state rates. Out-of-state tuition might be two to three times more than in-state rates. This is because non-resident students do not contribute to the state’s tax revenue, which helps subsidize public universities. Some states have agreements, or exchange programs, that offer reduced out-of-state tuition rates to students from neighboring states.
Many students try to qualify for in-state rates or seek financial aid and scholarships to mitigate the costs, which we’ll discuss below.
How to Get In-State Tuition if You Live Out of State
Getting in-state tuition while living out of state can significantly reduce college costs. Here are several strategies your child can consider for how to get in-state tuition out of state.
Establish Residency
Establishing residency is one of the most straightforward ways to get in-state tuition. Residency requirements vary by state and university. Living in the state for a certain amount of time is one common way to establish residency.
Move to the state early: Many states require students to live in the state for at least 12 months before establishing residency. Your child can prove residency with an apartment lease, utility bills or vehicle registration form, for example.
Prove financial independence: Your child can show financial independence to prove they don’t rely on out-of-state parents for support, which can involve having a full-time job, filing state taxes and paying rent or a mortgage in the new state. Your child may need to show employer proof as above or show proof that he pays taxes in that state.
Driver’s license and voter registration: Encourage your child to obtain a state driver’s license, register their vehicle in the state and register to vote. They may also want to consider having other evidence to prove residency, such as utility bills in their name, employment records or state income tax returns.
Be aware of rules: Residency requirements vary by state, so you’ll need to review specific policies at your child’s college. Also ensure your child will meet the residency requirements well before any deadlines, typically at least a year before they intend to start classes.
Tuition Reciprocity Programs
Some states have agreements that allow students from neighboring states to attend school at reduced tuition rates (not always full in-state tuition, but lower than out-of-state rates). Many universities offer regional markets and reciprocity agreements, meaning colleges or universities offer students in different states in-state or reduced tuition for students who live in the same region.
Here are a few tuition reciprocity programs that might be open to your child, depending on where you live:
Western Undergraduate Exchange (WUE): WUE enables students from one of 16 Western Interstate Commission for Higher Education (WICHE) states and territories in the Western U.S. to enroll as nonresidents in 160+ participating public colleges and universities.
Midwest Student Exchange Program (MSEP): Applies to several Midwest states, including Indiana, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, and Wisconsin.
New England Board of Higher Education (NEHBE) Tuition Break: Tuition Break covers New England states, providing savings for residents of the following six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, and for colleges that participate.
Academic Common Market (ACM): For students in southern states pursuing programs not available in their home state, the ACM allows students in southern states to enroll in out-of-state public universities at in-state tuition rates if the program they are interested in is not offered by their home state. States include Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Tennessee, Texas, Virginia, and others. Students must meet residency requirements in their home state and gain acceptance into the qualifying program at the partner institution.
Generally, the process involves checking your eligibility (such as state residency requirements and participating universities), majors eligible, GPA, application and other school requirements. Finally, you’ll apply directly to the school to let them know you’re applying using the tuition reciprocity program.
University-Specific Programs
Some universities offer their own discounted tuition or in-state tuition rates for out-of-state students with certain qualifications, such as meeting merit-based scholarship requirements, athletic scholarships or legacy programs (where alumni children qualify for in-state tuition).
Check into the options available to your child based on your own alumni status! It could be a huge relief to your family, though I will recognize that many students don’t prefer to attend where “mom and dad” went to school! (That’s another topic for a different day.)
Military Service
Many states offer in-state tuition rates to active-duty military members, veterans or their dependents, regardless of where they live. If you’re a military member, check into this.
Attend a Border State School
Some states offer what’s called border-state tuition for residents of neighboring states. For example, Minnesota and Wisconsin have a tuition reciprocity agreement, allowing residents to qualify for in-state rates at public universities across state lines.
Special Circumstances or Exceptions
Some states allow students to take advantage of waivers in certain situations or exceptions. For example, those who have immigrant or refugee status may take advantage of these options, and so might dependent children of state employees or those enrolled in specific majors that benefit your state. The best way to find out about these involves asking the schools your child may be interested in attending. Ask many questions!
Online Programs
Many schools offer online degree programs at in-state rates for all students, regardless of where they live. However, each school and state has specific residency requirements for tuition, so review them carefully. Also, ensure that this is the right option for your child — it’s not the right fit for everyone, particularly if you think your child would thrive at an in-person institution.
Institution-Specific Waivers
Certain colleges and universities might also provide tuition waivers or reduced rates based on specific requirements, such as academic merit. Schools might also have special agreements for students from particular counties or areas of your state.
Our college used to offer an out-of-state scholarship for students who attended an out-of-state college in an effort to boost our out-of-state numbers. Offers like that may be achievement-based or merit-based, depending on differing schools’ requirements. Your best bet is to ask questions if your student’s looking into an out-of-state institution. Email or call an admission counselor at that school for more information.
Undocumented Students
Some colleges and universities may offer in-state tuition to undocumented students. Check into institutions your child is considering if they accept DACA recipients or those in similar situations.
26% of states offer in-state tuition to undocumented students
24% offer in-state tuition if the student meets statutory requirements
22% require undocumented students to pay out-of-state tuition
4% require undocumented students to pay international student rates
In 11% of states, policies differ by institution, and another 11% of states have no statewide policy on tuition rates for undocumented students. Alabama does not allow undocumented student enrollment by state law.
Of public four-year institutions:
25% of states offer in-state tuition to undocumented students
27% offer in- state tuition if the student meets statutory requirements
25% require undocumented students to pay out-of-state tuition
In 10% of states, policies differ by institution, and 6% of states have no statewide policy on tuition rates. Arizona offers undocumented students regional tuition rates, Missouri requires undocumented students to pay international student rates. Alabama, again, does not allow students to enroll by state law.
Some states extend in-state tuition to dependents of state employees or public service workers, such as police officers or teachers, even if they don’t meet other residency criteria.
Native American and Tribal Agreements
Some states have agreements to offer in-state tuition to members of federally recognized Native American tribes, regardless of residency.
Are You Eligible for Reduced Rates?
There are several exceptions to standard in-state tuition rates that may allow students to qualify for reduced rates, even if they don’t meet the usual residency requirements. These exceptions
Financial Benefits of Securing In-State Tuition
One of the best ways to look at an example of an apples-to-apples comparison. Let’s look at out-of-state tuition vs. in-state tuition rates for an education major at Texas A&M University.
First, the out-of-state costs for an education major at Texas A&M University for one semester:
Total estimated cost of attendance with tuition and fees
$30,429
Now, compare that cost with in-state tuition for one semester:
Category
Cost estimate
Room and board
$6,504
Books and supplies
$552
Travel
$1,066
Loan fees
$30
Personal expenses
$1,657
Total estimated cost of attendance with tuition and fees
$15,584.35
You can save a lot of money by attending college in state, so consider all your options. Your child should have excellent reasons for attending an out-of-state institution, particularly if they won’t get great scholarships to attend.
Consider All Your Options
Note: Out-of-state and in-state designations generally do not apply to private colleges, as their tuition rates are typically uniform for all students regardless of residency.
In fact, I always smiled when someone asked, “What’s the out-of-state cost at your school?”
Why? Because I had great news for families. The cost wasn’t any different for out-of-state students because I worked at a liberal arts college.
Liberal arts colleges and private universities charge the same price no matter where you’re from, and here’s why: Unlike public colleges and universities, private institutions don’t get funding from state governments. Therefore, private colleges and universities charge one tuition rate for all students, whether your child resides in the same state as the institution is located or not.
For example, if a liberal arts college is in Florida but your child lives in Minnesota, you’ll pay the same price whether you live in Florida or Minnesota.
Email or call an admission counselor at each college your student’s considering. it’ll make you feel more prepared to make some decisions about the college search, or it’ll at least give you a start in the right direction!
FAQs
Check out a few frequently asked questions that might still be on your mind.
Will FAFSA cover out of state tuition?
Out-of-state students pay higher tuition and fees than in-state students. It’s difficult to predict whether you’ll ultimately pay more. Note that most out-of-state students will have a gap between the cost of tuition and fees and the amount of aid they’ll receive, so ensure you make the right decisions for your family so you’re not swamped by federal student loans or private student loans.
How do people afford to go to college out of state?
If your child really wants to attend a particular college out of state, reach out to the financial aid office to learn more about the full costs. Merit or need-based aid may cover some of the costs.
What are the cons of going to college out of state?
The largest disadvantage of attending an out-of-state college is that the costs are higher than in-state fees. However, some states offer discounts to students in several different ways, which we discuss in the article above.
Here’s how to get rid of student loans: Repay them yourself. No “magic plan” will make them go away faster than you can actively repay them on your own — not even government plans.
Why Income-Driven Repayment or Federal Programs Aren’t the Answer
Many people assume they can take on loans as part of financial aid and wait to enter into a repayment plan after graduation. They assume they’ll sit happy until everything gets forgiven at the end, as in the example of income-driven payment plans. (Your payment is based on your income, and you’ll continue to pay on them for 20 or 25 years until forgiveness swoops in to save the day.)
But ultimately, you may pay more over time if you rely on federal forgiveness programs, so those programs aren’t the answer, because the standard repayment plan is just 10 years. Why wait for 20 to 25 years? (Note that it’s completely understandable that many people have situations that cause them to need to have one job only — circumstances might prevent them from hustling or handling a second job.)
However, we need to keep the end goal in mind: getting rid of student loan debt. And note that learning how to get rid of student loan debt without paying doesn’t work. You can’t shake off student loans, and you might find yourself in a position of having your wages garnished to pay for student loans. You don’t want to be in that position, do you?
No! So pay attention to what’s going on with your loans and make a plan to pay them off. No more regrets about how you spent way too much money on room and board, how you spent so much on pizza when you lived in off-campus housing, or that you should have gotten in-state tuition. No more regrets. Now it’s time to focus on paying it off.
Here are the real ways to learn how to get rid of student debt. If you’re at the beginning of your journey, look into how student loans work.
Pay Extra Toward the Principal
There are a few parts that make up your student loans: the principal balance, or the amount you borrowed. It also includes interest, or what you’ll pay for borrowing the loan, and the fees the lender charges as well. You must make at least the minimum amount payment on your student loans.
Paying extra toward the principal will help you pay off your loans faster. The more you pay, the less interest you’ll owe. A student loan payoff calculator can tell you how quickly you’ll pay off your student loans and how much overall interest you’ll save over the life of your loan.
Here’s an example of how paying off student loans early can save you money with a $30,000 student loan and a fictitious interest rate of 5% per year:
Loan Amount: $30,000
Interest Rate: 5% per year
Loan Term: 10 years (120 months)
Monthly Payment: $318.20
Regular Repayment (10 Years):
Total Interest Paid: $8,184.24
Total Amount Paid: $38,184.24
Early Repayment (5 Years):
Monthly Payment: $566.14
Total Interest Paid: $3,968.08
Total Amount Paid: $33,968.08
Savings by Paying Off Early:
Interest Savings: $4,216.16
Time Saved: 5 years
By increasing your monthly payment and paying off the loan in five years instead of 10, you could save over $4,000 in interest. This example shows how even small extra payments can lead to significant savings and financial freedom sooner.
Make More than the Minimum Payment
One of the best ways to pay off your student loans is to make more than the minimum payment. Once you determine your budget (how much money you have coming in and going out) you’ll know exactly how much extra money you have in cash at the end of the month. If you can kick in just $50 extra at the end of the month, that’s okay — it’s better than nothing! If you can double your student loan payment, that’s amazing.
Don’t worry about how little you’ve increased it as long as you do something to increase your payment each month. As you receive raises and bonuses, you can consider upping your minimum payment. Some people also elect to get a side hustle to raise your minimum payment.
Here are some ideas:
Round up payments to the nearest $10 or $50
Make bi-weekly payments instead of monthly
Use windfalls like tax refunds or bonuses for extra payments
Allocate a portion of any pay raise towards extra payments
Apply extra income from side gigs or overtime
Cut discretionary spending and redirect savings to payments
Pay extra towards the highest-interest debt first
Use cashback rewards or rebates to make additional payments
Avoid adding new debt to maximize repayment efforts
Make additional payments directly after receiving your paycheck
Get on a Budget
Get on a budget. If there isn’t another phrase greeted by a louder round of groans, I don’t know what it is. Budgeting might seem like a huge bummer to a lot of people, but it doesn’t have to be, especially if you’re meeting your goals at the end of the month.
One of the best ways to get on a budget is to consider using a budgeting app. However, you don’t have to do that — if you’re disciplined, you can create a budget all on your own and stick to it, even if it’s in a simple spreadsheet.
There are five main steps to getting on a budget:
List your income. Tally up everything you make, including any side hustle money that you earn.
List your expenses. How much are you spending per month relative to the amount you earn? If you’re spending more than you earn, that’s a quick sign that you need to start watching your money.
Subtract your expenses from your income. What’s left over? How much money do you have left? Are you spending more than you earn?
Track everything coming and going. Keep track of your transactions so you know exactly how much you can budget per month. You may even have different budget categories, like groceries, clothing, etc. Keep in mind the important things on your list, like setting aside money for retirement and an emergency fund.
Make a new budget each month. Budgets can be fluid, which is a beautiful thing. You may want to challenge yourself to save more than you had last month, or put more toward your student loans than you did the month before.
Cut Spending
Can you cut your spending? Chances are, there’s something that you don’t need. Here are some ideas you can cut out:
Extended warranties
Gym memberships
Premium cable packages
Bottled water
Designer clothing
Name-brand medications
Banking fees
Luxury car features
Subscription boxes
Fancy coffee
After you get on a budget, you might consider searching for these items that you regularly spend money on. Who needs ’em? You don’t, especially when you’re trying to get rid of student loans.
Pay While in College
Paying on your loans while in college: Is it possible? Yes, and you may want to consider that approach if you have an unsubsidized federal loan. Unsubsidized loans means the government doesn’t pay for your loan while you’re in school, unlike subsidized loans. If you can tackle some of your costs while you’re a student, you can consider this possibility. Doing so may help you reduce your overall debt, reduce stress after graduation and give you a head start on paying for college.
If you’re still in school, look into a tuition payment plan to help you — it can break up the costs.
Increase Income
How might you increase your income? Can you get a side gig in the very popular gig economy? You might consider:
Freelance writing
Rideshare driving
Pet sitting/dog walking
Virtual assistant
Graphic design
Tutoring
Photography
Delivery driving
Social media management
Handyman services
House cleaning
Online surveys
Event planning
Blogging
Babysitting
Transcription services
Dropshipping
Personal fitness training
Freelance web development
Selling handmade crafts
Or what about a second job? If you have the energy to work two (or even three) jobs, it would be well worth it to pay off your student loans faster. Consider the following:
Retail associate
Bartender
Restaurant server
Call center representative
Delivery driver
Warehouse worker
Customer service representative
Administrative assistant
Security guard
Hotel receptionist
Uber/Lyft driver
Bank teller
Personal care aide
Janitor
Cashier
Night auditor
Fitness instructor
Receptionist
Freelance designer
Landscaping assistant
Or you can ask for a raise at your existing job, of course. Once you make a decision about how you’ll increase your income, you can put any extra hard-earned money toward your debt. It’s a fantastic way to get out of debt much more quickly than you might have been able to do previously.
Refinance Only if it Makes Sense
Refinancing means replacing your existing loans (federal, private or both) with a private loan. Refinancing doesn’t reduce the amount you owe — it changes your loan in some way so you owe less over your loan term. These are the ways it can change your loan positively:
Give you a shorter repayment period: Refinancing a loan can result in a shorter repayment period, which allows you to pay less interest over time. However, it’s important to note that with a shorter repayment period, it’s likely that you’ll have to make higher monthly payments on your student loan debt.
Lower your interest rate: Getting a lower interest rate is one of the biggest benefits of refinancing, because you can save money over your loan term if you have a lower interest rate. For example, if you owe $30,000 on your student loans at 7% and a term length of 20 years, you’ll pay more than $26,000 in total interest over the course of the loan. If you refinance to a 5% interest rate and keep the same 20-year term, you’ll save around $8,000 in interest.
Reduce your monthly payments: You can also lower your monthly payment through a refinance. However, it also increases your loan term, and a longer loan term means you’ll end up paying more in interest over time.
The borrower requirements generally vary by lender, but you generally must have good credit with an established credit history, stable income, a degree from an accredited college or university, and a certain amount in student loans.
Shop around with a few different private loan lenders to see if a refinance makes sense for you.
Don’t Bank on Government Plans
So much has been said about the benefits of sticking to government plans, like loan forgiveness programs or deferment or forbearance options. However, it’s a much better option to simply pay off your student loans yourself, as we’ve discussed. But why, exactly?
Here’s exactly why: Let’s take Public Service Loan Forgiveness (PSLF) as an example. You must make 120 qualifying monthly payments on your student loans and work for a qualifying employer (such as a government or nonprofit organization) to qualify for PSLF.
In other words, you must continue making payments for 10 years, plus you might give up on more beneficial routes of employment, including more lucrative job opportunities. (However, it is important to note that you can get certain forgiveness benefits if you work as a teacher, for the military or as a health care worker.)
Why drag out your student loans longer if you could finish paying them off in five years instead of 10? You’ll save money by not dragging them out. Income-driven repayment plans can also affect you in the long run as well because you pay based on your earnings and family size.
Federal loans also allow you to temporarily pause your payments through deferment or forbearance if you face financial hardship, unemployment, or if you’re returning to school. You will still accrue interest while your loans are in forbearance, so you’ll owe even more money over your loan term while they’re in forbearance.
Need an example? Let’s break down an example of how an income-driven repayment plan can end up costing a student more money over time with actual numbers:
Loan amount: $50,000
Interest rate: 5%
Annual income: $40,000 to start, increasing by 5% per year
Family size: 1
With the Standard Repayment Plan:
Repayment term: 10 years
Monthly payment: $530 (fixed)
Total payments over 10 years: $530 x 120 months = $63,600
Amount added to original loan amount: $13,600
With PAYE Repayment Plan:
Years one through three: Monthly payments are income-driven. Let’s say the payments start at $200 per month.
Total for first 3 years: $200 x 12 months x 3 years = $7,200
Years four through six: As income increases, the payments rise to $350 per month.
Total for next 3 years: $350 x 12 months x 3 years = $12,600
Years seven through 10: Payments continue to rise as income increases further, say to $450 per month.
Total for final 4 years: $450 x 12 months x 4 years = $21,600
Total payments over 10 years (before forgiveness at 20 years) = $7,200 + $12,600 + $21,600 = $41,400
But here are the hidden costs. During the 10 years, interest accrues on the loan balance. In this example, the borrower’s monthly payments early on ($200, $350) may not cover the full interest on the loan, leading to the loan balance increasing over time (negative amortization).
Even though the borrower only paid $41,400 over 10 years, which seems like a savings compared to the standard repayment plan, here’s where the cost comes in: They could have paid off the loan faster under a standard repayment plan and avoided the extra accrued interest. By the time year 20 rolls around, how much would you have paid under the income-driven plan versus the standard repayment plan, or better yet, paying your loans off early?
It’s quite possible that you feel like you don’t make enough to pay off your loans, but consider getting a second job or side hustle instead of believing you have to get on one of the income-based plans.
Watch Out for Consolidation
Consolidation means taking all of your federal student loans and turning them into one loan with one interest rate. It may not be a good idea to consolidate your federal student loans because what happens if some of your federal loans have a lower interest rate?
Consolidation can also lengthen your repayment period, so you’ll likely pay more in interest over the years. In addition to that, outstanding interest on your consolidated loans becomes part of the original principal balance on your new consolidation loan, meaning interest might accrue on a higher principal balance than if you’d kept your loans divided.
Consolidation might also mean lower interest loans might become higher when you put them all together. Ask questions about what it’ll mean for your loans before you opt to consolidate.
Consider All Angles When Getting Rid of Student Loans
The message: You and only you have the power to learn how to get rid of student loan debt. Student loans won’t magically disappear, unfortunately!
Wondering how to get rid of private student loans, including how to get rid of Navient private student loans or private loans from another provider? The same principles above can apply to private student loans as well.
The biggest thing is to plug away at them, and even if you have a low interest rate, consider what having student loans hanging over your head will do for you. If you owe money, that entity will control your life until you pay it back.
We’ll take a look at a few frequently asked questions about getting rid of student loans below.
Can you get student loans wiped out?
Yes, in very rare situations, you can have your student loans discharged, but that doesn’t happen very often. But what does that mean, exactly? When your student loans are discharged, you won’t have to pay back some or all of your loans. You may also qualify for forgiveness after successfully participating in a government plan, such as PSLF.
However, in many situations, these programs prolong your student loan debt and cause you to pay more over time. And if you’re waiting for a fairy godmother to come and wipe out your student loans, dream on!
What happens if I don’t pay my student loans?
After a 30-day-late payment, your loan servicer will charge you a late fee up to 6% of the amount due. After 90 days of no payments, your servicer will report your loan as delinquent to the credit bureaus. You don’t want that, because it can affect your credit score, potentially preventing you from buying a house or even affecting your ability to get a job (some employers check your credit!).
How do you pay off student loans when you’re broke?
I get it — it’s so difficult to understand how you’ll even put food on the table sometimes. However, consider getting a side hustle or part-time job to set aside money for paying off loans. Ask your buddy if he needs extra help in his junk hauling business, or use your skills you learned in college to create a side hustle that you and only you can do. The sky’s the limit, so use your imagination.
Most of us have been there: transitioning from high school to college puts us in the grownup league. This is the point where many things change, and we begin to think more maturely. One of the many things we begin to consider is a roof over our heads.
Things aren’t as simple as that; you shouldn’t dismiss the idea instantly. This guide will outline the options for students who want to buy a home while enrolled in college or university.
Buying a house or an apartment is a big commitment, so the first question you should ask yourself is whether you should consider buying a property.
Even though this step has some pros and cons, the advantages outweigh the negative sides, so most people will say to go for it. Living under your roof means you won’t pay for a dorm room or rent, which can get costly, depending on the location.
The monthly payments will be higher, so a roommate can be a good idea. Having one means you can partially cover the payment and be more comfortable with your finances. Once you finish college, you can continue renting it and have an additional monthly income.
Committing to a home mortgage is recommended if you stay in the area. While that is true, moving to another state or country doesn’t mean you cannot keep the property. You can always sign a contract with an agency and let it deal with rent and maintenance. The best part is that you’ll continue getting monthly income.
How to Buy a Home as a Student
One of the main reasons students are hesitant about buying homes is generally instability. They work part-time or underpaid jobs, which often discourages them from considering a permanent roof over their heads. Even though this may make things difficult, it’s not entirely impossible.
Mortgage Loan
Most of the properties in the US are purchased by taking out a mortgage, and it won’t be too different if you’re a student. Getting a loan and paying for it for several decades with interest is a good way to get your home now without thinking too much about saving enough to pay it at once.
Many mortgage companies are offering different kinds of loan programs each with various conditions. The result is some flexibility in choosing based on the interest rate or the down payment percentage.
Speaking of down payments, saving enough money can be a bit of a struggle as a student. Careful budgeting may help, but in a worst-case scenario, you can always check some of the assistance programs or go for a loan with no down payment.
Get a Co-signer
As a student, your credit score may not be ideal for getting a loan, but that doesn’t mean you won’t be able to get your new home. If you feel like you can afford the monthly payment but were denied the mortgage, your other option is a co-signer.
The idea behind this is simple: the person in question would be one with a better credit score than yours who can vouch for you. It’s a way of telling the lender you can make full payments on time. A co-signer is often someone very close to you, like a parent, sibling, or partner. The main reason is that they’ll take on the payment responsibility if you fail to do so.
Since the co-signer vouches for you, lenders will approve your mortgage, and you’ll be ready to purchase your new home. As long as you pay on time, everything will be fine. If you fail to do so, that responsibility falls on the so-signer, and they’ll need to continue making the payments instead of you. Keep in mind that this can hurt their credit score as well.
Consider All the Angles Before You Buy
Many students dismiss the idea of a home mortgage due to existing student loans. While having an existing loan may complicate things a bit, it won’t make it impossible to buy a home.
When applying for a mortgage, the first thing that lenders evaluate is your debt-to-income ratio or DTI. This gives them an idea of how much you make and the debt you’re currently in. Some have a fixed number and don’t approve applications below that, while others are more flexible. If your DTI isn’t as ideal as you want it to be, you can try to aim for flexible lenders.
On the other hand, if you’re not in a rush, you can start working on improving your score and apply for the loan again once the numbers are up.
Gaining experience in the stock market can be a transformative part of a teen’s financial education. Beyond the potential for financial gain, investing teaches valuable life skills, such as patience, critical thinking, and decision-making.
These are qualities that extend well beyond finance, preparing teens for the responsibilities and challenges of adulthood.
By learning to evaluate risks, track investments, and adjust strategies based on market conditions, teens develop a mindset that encourages long-term planning and disciplined financial behavior—qualities that will benefit them in many aspects of life. Keep reading for everything you need to know about stock market investing for teens.
Before diving into the world of investments, it’s important for teens—and their parents—to grasp the fundamentals of the stock market.
The stock market can seem complex, but breaking it down into simple terms helps demystify the process and makes investing more approachable.
What Are Stocks and How Do They Work?
At its core, a stock represents a share in the ownership of a company. When someone buys a stock, they’re essentially buying a small piece of that company. If the company performs well, the value of the stock can increase, leading to potential profits when sold.
However, if the company underperforms, the stock’s value might decrease, which introduces risk. Teaching teens about how stocks reflect the performance and health of a company helps them understand why stock prices fluctuate and how this impacts their investments.
The Difference Between Stocks, Bonds and Mutual Funds
Understanding the different types of investments is crucial for a well-rounded financial education. Stocks, as discussed, are shares of ownership in a company.
Bonds, on the other hand, are a type of loan made to a company or government, where the investor earns interest over time and is paid back the principal at maturity.
Mutual funds are a collection of stocks, bonds, or other securities, managed by professionals, that allows investors to pool their money together. These funds can be less risky than individual stocks because they diversify investments across multiple assets.
Explaining these differences to your teen helps them make informed choices based on their risk tolerance and investment goals.
Online Tools and Resources for Young Investors
Equipping teens with the right tools can make their journey into investing smoother and more educational. Several online platforms and resources are designed to help young investors learn, track, and manage their investments effectively.
Apps and Websites for Tracking Investments
A great starting point for teens is MarketData.app, a platform that provides real-time and historical market data, allowing users to track stocks, options, and indices. The platform integrates seamlessly with Google Sheets, making it easier to analyze data and build custom reports. It’s particularly useful for those who want to dive deeper into the data behind their investments.
Other valuable tools include Robinhood, which is user-friendly and popular among beginners, E*TRADE, which offers educational resources alongside trading capabilities, and Yahoo Finance, known for its comprehensive stock tracking and market news.
These platforms not only help teens monitor their portfolios but also provide educational content that can enhance their understanding of the stock market.
Educational Platforms for Learning More About the Market
Learning about the stock market doesn’t have to be daunting, thanks to various educational platforms. Websites like Investopedia and The Motley Fool offer a wealth of articles, tutorials, and videos that cover everything from basic concepts to advanced strategies.
These platforms allow teens to learn at their own pace and explore topics that interest them.
Khan Academy also offers free courses on economics and investing, providing a solid foundation for understanding how the market operates.
The Benefits of Virtual Stock Market Games
Before putting real money at risk, teens can benefit from virtual stock market games. These simulators allow them to trade stocks with virtual currency, providing a risk-free environment to learn and experiment.
These tools are not only educational but also engaging, making the learning process enjoyable.
Common Investment Terms Every Parent Should Explain
Understanding key investment terms is essential for navigating the stock market. Explaining these concepts to your teen will help them make informed decisions and avoid common pitfalls.
Explaining Dividends, Shares, and Portfolios
Dividends are payments made by a company to its shareholders, usually derived from profits. These payments can be a source of income for investors and a sign of a company’s financial health.
Shares, as mentioned earlier, represent ownership in a company. The collection of all the different investments a person owns is called their portfolio.
Diversifying this portfolio—holding different types of investments—can help manage risk. Helping your teen understand these terms lays the groundwork for making smart investment choices.
Understanding Market Volatility and Its Impacts
Market volatility refers to the rapid and significant price movements of stocks or other securities. While volatility can present opportunities for profit, it also comes with risks, as prices can swing both ways.
Explaining how external factors like economic news, political events, and market sentiment can cause volatility will help your teen grasp why prices fluctuate and why it’s important to be patient during these times.
Breaking Down Stock Market Indices
Stock market indices, such as the S&P 500 or the Dow Jones Industrial Average, track the performance of a group of stocks, providing a snapshot of the market’s overall health.
These indices are often used as benchmarks to compare the performance of individual stocks or portfolios. Understanding indices helps teens see the bigger picture of how markets perform over time and the importance of diversification in managing risk.
About Risk and Reward
Investing always involves a degree of risk, but understanding how to balance that risk with potential gains is key to successful investing. Teaching your teen about risk and reward helps them approach investments with a realistic mindset, rather than expecting quick wins or guaranteed returns.
Balancing Risk with Potential Gains
Every investment carries some level of risk, but the potential for reward is what makes investing attractive. For example, following the wbc latest trading price on HALO Technologies allows investors to evaluate market performance and make informed decisions. Higher-risk investments, like individual stocks or cryptocurrencies, often offer the possibility of higher returns.
However, they also come with the chance of significant losses.
Lower-risk investments, such as bonds or index funds, may provide more modest returns but are generally more stable. Teaching your teen to assess their comfort with risk and align it with their financial goals is an important part of their investing journey.
Assess the Risk Level of an Investment
Evaluating the risk level of an investment involves looking at several factors, including the company’s financial health, market conditions, and economic trends.
Encourage your teen to research the companies they’re interested in, looking at earnings reports, market forecasts, and historical performance.
Understanding these elements helps them gauge how much risk they’re taking on and whether it aligns with their goals. It’s also important to diversify investments to spread risk across different assets, reducing the impact of any single investment underperforming.
How to Start Investing
Starting to invest can be an exciting step for teens, but it’s important to begin with a solid foundation. This involves setting up the right accounts and choosing investments that match their goals and risk tolerance.
Opening a Custodial Account for Your Teen
A custodial account is a great way to introduce your teen to investing. As a parent, you manage the account until your teen reaches the age of majority, but they can participate in investment decisions. This setup allows teens to learn about investing hands-on, with your guidance.
You can help them choose investments, track their performance, and understand the tax implications of their decisions.
Selecting Your First Stocks Together
Choosing the first stocks to invest in is a significant step. Start with companies your teen is familiar with, such as brands they use or admire. This approach makes the stock market more relatable and helps them stay engaged.
Discuss why you’re choosing certain stocks, considering factors like the company’s performance, industry trends, and overall market conditions. This collaborative process not only builds their investment knowledge but also strengthens their decision-making skills.
Starting Small and Building Confidence
It’s wise to start with small investments to build confidence. This way, your teen can experience the ups and downs of the market without risking significant amounts of money.
As they become more comfortable and informed, they can gradually increase their investments. Starting small also reduces the pressure to succeed immediately, allowing them to learn from any mistakes without major consequences.
The Role of Diversification in a Balanced Portfolio
Diversification is a cornerstone of smart investing. It involves spreading investments across different asset types to reduce risk and increase the chances of steady returns.
What Does Diversification Mean?
Diversification means not putting all your eggs in one basket. In investing, this means spreading your investments across various sectors, industries, and asset types—such as stocks, bonds, and real estate—to mitigate risk.
If one investment underperforms, others in different sectors might perform well, balancing the overall portfolio.
How Diversifying Reduces Risk
Diversifying reduces the impact of market volatility on your portfolio. For example, if you invest only in tech stocks and the tech sector faces a downturn, your entire portfolio suffers. However, if you also invest in health care, energy, or bonds, those sectors might perform better during that same period, offsetting losses.
This approach smooths out the highs and lows of the market, leading to more consistent returns over time.
Encouraging Long-Term Thinking in Stock Market Investments
Investing should be seen as a long-term strategy rather than a quick way to make money. Teaching teens to think long-term helps them understand the benefits of patience and consistency.
The Power of Compound Interest Over Time
Compound interest is one of the most powerful concepts in investing. It refers to the process where the earnings on your investments generate additional earnings over time. Even small investments can grow significantly if left to compound over many years.
For example, investing a modest amount early in life and allowing it to grow can result in substantial returns by the time they reach retirement age. This illustrates the importance of starting early and staying invested.
Why Patience Is Key in Investing
Markets can be volatile, with prices rising and falling unpredictably. However, history shows that the stock market tends to increase in value over the long term. Patience allows investors to ride out short-term fluctuations and benefit from the overall growth of the market. Teaching your teen to stay calm during market downturns and avoid impulsive decisions helps them develop a disciplined approach to investing.
Teaching Teens the Value of Holding Investments
One of the most valuable lessons in investing is the importance of holding onto investments for the long term. Selling investments in response to short-term market changes can result in missed opportunities for growth.
Encourage your teen to focus on the bigger picture and the potential for long-term gains rather than reacting to daily market movements. This approach can lead to better financial outcomes and a more stable investment experience.
Lessons from Warren Buffett and Other Major Investors
Warren Buffett, one of the most successful investors in history, is known for his long-term investment strategy and his belief in the power of compounding. He famously said, “The stock market is designed to transfer money from the Active to the Patient.” Buffett’s approach—buying quality companies and holding them for decades—has proven to be highly effective.
Other major investors, like Peter Lynch and John Bogle, also advocate for long-term thinking and diversification.
Lynch emphasizes investing in what you know, while Bogle, the founder of Vanguard, pioneered index fund investing as a way to achieve diversified, low-cost exposure to the market.
Teaching your teen about these investors’ strategies provides them with valuable insights and timeless principles that can guide their own investing journey. The lessons learned from these investing legends can help your teen develop a sound approach to building wealth over time.
Why and what should teens care about cybersecurity? As your teen steps into the world of online payments, the stakes are higher than ever. What may seem like a simple transaction can have far-reaching effects. But you can beat this with a little bit of information and preparedness.
What might happen if you don’t?
An unsecured payment or sharing personal details on a dubious website can lead to identity theft, compromised accounts, or financial losses. These aren’t just immediate inconveniences but can impact their financial future.
And issues from insecure transactions can resurface and create obstacles later in life. This makes it vital for parents to instill safe online habits early on.
Before diving into solutions, it’s crucial to understand the specific dangers lurking online. Cybercriminals often target teens, who may not yet have developed the caution necessary to navigate the digital world safely.
Common Online Payment Scams Targeting Teens
Teens are frequently bombarded with attractive offers online, many of which are scams designed to steal money or personal information. These scams often present themselves as limited-time discounts, exclusive deals, or free giveaways.
Teens, eager to grab a deal, may not recognize the signs of a scam. Phishing attempts are common, where fraudulent emails or messages mimic legitimate companies, tricking teens into providing sensitive information.
Awareness of these scams is the first line of defense, so parents should regularly discuss the types of offers that are too good to be true.
How Cybercriminals Exploit Teenagers’ Online Habits
Teens’ social media use and online activity provide a treasure trove of information for cybercriminals. Often, teens share details like birthdays, school names, and even locations, which can be used to guess passwords or answer security questions.
Hackers might pose as friends or influencers, gaining trust before asking for sensitive information.
Encouraging teens to be more private and cautious about their online interactions can help mitigate these risks. Regular conversations about the importance of keeping personal information secure are essential.
Recognizing Red Flags in Online Transactions
Teaching teens to spot suspicious activity is another critical step. Websites that lack secure connections, offers that demand immediate action, and vendors that ask for too much information are all red flags.
Encourage your teen to slow down, question deals that seem overly generous, and verify the legitimacy of websites before making any transactions. Building this habit will not only protect them now but will also set them up for safer financial practices in the future.
How to Recognize that a Site has Secured Payment
Here’s how to help your teen recognize a secure payment site quickly.
Look for Trusted Payment Providers
When making online purchases, seeing familiar logos from trusted payment providers can be a strong indicator of a secure transaction.
Companies like PayPal, Stripe, and Allied Pay have built reputations for secure, reliable payment processing.
These providers use advanced encryption to protect financial data and offer buyer protection features that can help recover funds in case of a dispute. If your teen sees these logos at checkout, it’s a good sign that the site values security.
However, it’s important to note that scammers can also fake logos, so this shouldn’t be the only verification step. Teach your teen to be cautious and to combine this check with other security measures.
Verify the URL and Security Indicators
Beyond checking for trusted payment provider logos, your teen should also inspect the URL of the payment page. A legitimate and secure site will have a URL that begins with “https” rather than just “http”—the “s” stands for secure.
There should also be a padlock icon next to the URL in the address bar, indicating that the connection is encrypted. This ensures that the information entered during the transaction is protected from prying eyes.
Phishing scams often mimic legitimate sites, using URLs that look similar but have subtle differences, such as a misspelled company name or an unusual domain extension.
Encourage your teen to double-check the URL for accuracy before proceeding with any payment. If something seems off, it’s better to back out and reassess rather than risk compromising their information.
Recognize and Avoid Suspicious Payment Requests
Legitimate payment processors will never ask for personal information, like social security numbers, passwords, or security questions, during the checkout process. If a site requests this type of information, it’s a major red flag. Teach your teen to recognize these suspicious requests and to exit the transaction immediately.
In addition, if a site pushes your teen to complete a payment quickly or offers a deal that seems too good to be true, it’s worth taking a step back. Scammers often create a sense of urgency to prevent buyers from thoroughly checking for security.
Teaching Your Teen Safe Payment Practices
After understanding the risks, the next step is to equip your teen with the tools and knowledge to handle online transactions safely.
Setting Up Secure Payment Methods for Teens
Begin with choosing payment methods that offer security features. Encourage your teen to use services that offer buyer protection, such as PayPal, or consider setting up a virtual credit card that can be used for online purchases.
These methods reduce the exposure of personal financial information and add a layer of protection against fraud. Discuss with your teen how these tools work and why they’re preferable over traditional credit or debit cards.
Guiding Teens on How to Identify Secure Websites
When your teen shops online, they should know what to look for in a secure website. Teach them to check for “https” in the URL and a padlock icon in the address bar, which indicate that a site is secure.
Emphasize the importance of only entering payment information on trusted and verified sites. Public Wi-Fi is another danger zone; encourage them to avoid making transactions unless connected to a secure network.
The Importance of Strong Passwords and Two-Factor Authentication
Passwords are the frontline defense in securing online accounts. Encourage your teen to create complex passwords that are difficult to guess and to change them regularly. Equally important is the use of two-factor authentication (2FA), which requires a second form of verification beyond just a password.
This extra step can be a powerful deterrent against unauthorized access. Explain how 2FA works and help them set it up on their accounts.
Monitoring and Managing Your Teen’s Online Spending
Even with safe practices in place, it’s important to keep an eye on your teen’s online spending to ensure they’re staying within their means and avoiding impulse purchases.
Tools for Tracking Your Teen’s Online Purchases
Various tools and apps are available to help track spending. Set up notifications for transactions, so you’re aware of purchases in real-time. These tools can help both you and your teen monitor their spending patterns, making it easier to spot any unusual activity or overspending.
Regularly reviewing these reports together can also be an opportunity to discuss responsible financial behavior.
Setting Spending Limits and Budgeting Guidelines
Discuss the importance of setting limits on how much they can spend online each month. Establishing a budget together not only prevents overspending but also teaches your teen valuable lessons about financial planning.
Encourage them to think critically about their purchases and consider what they truly need versus what they want. Setting these guidelines early on can help your teen develop strong financial habits that will serve them well into adulthood.
Discussing the Importance of Financial Transparency with Your Teen
Open communication about money is key to helping your teen manage their finances responsibly. Encourage them to be transparent about their spending and to come to you with any questions or concerns they might have.
Creating an environment where financial discussions are normal and encouraged will help them feel more comfortable managing their money and seeking advice when they need it.
Tools and Resources for Secure Online Transactions
As your teen navigates the world of online payments, providing them with the right tools and resources can make all the difference.
By equipping them with the knowledge and apps that prioritize security, you help them build habits that protect their financial well-being.
Recommended Apps for Safe Online Payments
One of the best ways to ensure your teen’s online transactions are secure is to introduce them to apps specifically designed for safe payments. Apps like PayPal, Venmo, and Cash App offer built-in security features such as fraud detection and buyer protection.
These platforms not only make it easier to track spending but also limit the amount of personal information shared with vendors. Discuss the benefits of using these apps and how they can add a layer of security to everyday transactions.
Using Parental Controls to Monitor Online Spending
Parental controls are another valuable resource in keeping your teen’s online spending in check. Many banking apps and services offer features that allow you to monitor transactions, set spending limits, and even receive alerts for unusual activity.
Setting up these controls helps you stay informed about your teen’s spending habits and allows you to step in if something doesn’t seem right. This oversight is especially useful in helping teens learn to manage their money responsibly while still under your guidance.
Educational Resources to Teach Teens About Online Security
In addition to apps and controls, educational resources can be incredibly helpful in teaching your teen about online security. Websites like Common Sense Media and government sites like OnGuardOnline offer a wealth of information on safe online practices.
These resources are designed to be engaging and informative, making it easier for teens to understand the importance of protecting their personal and financial information. Encouraging your teen to explore these resources can reinforce what you’re teaching them at home.
Empowering Your Teen to Make Smart Financial Choices Online
While tools and resources are essential, empowering your teen to make smart financial choices independently is equally important.
By guiding them to think critically about their spending decisions, you help them develop skills that will serve them well throughout their lives.
Encouraging Independent Decision-Making with Guidance
As teens begin to take more control over their finances, it’s important to strike a balance between guidance and independence. Encourage your teen to make their own decisions about purchases, while also being available to discuss the reasoning behind those decisions.
This approach helps them build confidence in their ability to manage money while still providing a safety net. Regular conversations about their spending choices can lead to valuable lessons and help them understand the impact of their financial decisions.
Teaching the Value of Comparing Prices and Services
One of the most practical skills you can teach your teen is the habit of comparing prices and services before making a purchase. Encourage them to research different options, read reviews, and consider the long-term value of what they’re buying.
This habit not only helps them save money but also teaches them to think critically about their purchases. As they get used to this process, they’ll become more discerning consumers, able to spot deals that are truly worth their time and money.
Instilling the Habit of Reviewing Statements Regularly
Another important aspect of financial responsibility is regularly reviewing bank statements and transaction histories. Encourage your teen to make this a monthly habit, checking for any discrepancies or unauthorized charges.
This practice helps them stay on top of their finances and quickly spot any issues that need addressing. It also reinforces the importance of transparency and accountability in managing money.
Staying Informed as a Parent
The world of online payments is always changing, with new apps, services, and security measures emerging regularly. Staying informed about these trends allows you to better understand the tools your teen is using and how they can protect themselves.
And you’re not alone in navigating the challenges of raising a tech-savvy teen. Many parents face similar concerns, and joining communities, whether online or in-person, can provide valuable support.
These groups are great places to share experiences, ask questions, and learn from others who are also focused on keeping their teens safe online. Engaging with other parents can offer new perspectives and tips that you might not have considered.
Families often find the costs of college a burden difficult to handle. However, what if there was an opportunity to smooth this task to some extent with the help of available digital resources?
Search engine optimization (SEO) tools might be one way to raise money. Through SEO tools, a lot of money that one would want to spend in college can be saved. To help parents and students achieve the goal of making college affordable, this blog post will explain the use of tools related to SEO. Keep reading to learn more about SEO for college savings.
SEO is a technical marketing solution that improves website position in search engine lists to provide the maximum exposure to people. SEO attempts to enhance a site’s relevance and prominence to specific search terms in the context of sponsored and paid results through keywords, meta descriptions and backlinks, among others.
The traffic generated is organic, meaning you can rely on traffic for monetary value through advertising, affiliation or selling. If properly applied, SEO has been proven to be an effective technique for planning and financing college, since it helps a person make money continuously. SEO is beneficial on multiple levels and provides a great return on investment for your educational and financial objectives.
Practical SEO Tools for Parents and Students
Let’s take a look at some practical SEO tools you can use.
Free SEO Tools
Several free SEO tools can be a good starting point for parents and students. Google Analytics, for example, provides insights into website traffic, user behavior and the effectiveness of marketing campaigns.
Another great tool is Google Search Console, which helps you understand how Google views your site, alerts you to issues, and offers data on search performance. These tools can offer valuable data for free and are ideal for those just starting out in SEO or looking to improve their digital presence. Additionally, tools like Ubersuggest and MozBar can provide keyword suggestions and on-page SEO analysis, further helping you craft a strong SEO strategy.
Paid SEO Tools
While free tools are helpful, paid SEO tools offer more advanced features and more comprehensive data. Ahrefs and SEMrush provide not only keyword research but also in-depth backlink analysis, site audits and competitive analysis. Investing in these tools can significantly boost your SEO efforts by uncovering hidden opportunities and streamlining the optimization process. This, in turn, can enhance your website’s visibility, drive more organic traffic, and ultimately help you increase revenue streams that could contribute to college savings. Other notable paid tools include Moz Pro and Majestic, each offering unique features that can further refine your SEO strategy.
Step-by-Step Guide to Using SEO for College Savings
Keyword research is the first step in any SEO strategy. Use tools like Google Keyword Planner, SEMrush, or Ahrefs to find high-traffic, low-competition keywords related to education and savings. Sometimes, resources like that, or even Netflix plan settings can be blocked by geo-restrictions, which is where virtual private networks (VPNs) work to your advantage.
VPNs allow you to change your IP address and access content that may not be available in your current location, giving you more options for keyword research. VeePN is an excellent VPN provider that offers multiple server locations and unlimited bandwidth for a budget-friendly price. By using a VPN for Chrome, you can uncover valuable keywords to target in your content and increase the chances of ranking high in search results. This will help you create content that attracts visitors who are specifically interested in these topics. Look for long-tail keywords that your target audience might be searching for, as these can often present less competition and more targeted traffic.
Implementing SEO Strategies
Now that you know your keywords, you need to optimize your website by applying these keywords. To begin with, go through all of the website’s on-page factors, from the title tags, meta descriptions and header tags, to optimize them. It’s also important that you use your chosen keywords progressively into your content, so your written work is easy to read and interesting. Ensure that your website is optimized for mobile gadgets and loads very fast in order to provide a good experience for users. Moreover, concentration should be on internal linking which acts as a guide to visitors and boosts the site’s ranking and relevance.
Creating Shareable Content
In SEO, content is king, so it’s all about creating good content that will be helpful and shared among users. Create a set of materials in the form of blogs, videos and infographics and e-books with useful information on how to save for college. Get visitors to your site and post your articles on social networks such as Facebook and LinkedIn.
Engage readers by using proper headlines and good graphics that will draw their attention. The greater the likelihood of a piece of content being shared, then there is a likelihood that it will be passed around, increasing viewership and possibilities of saving money. Even after sharing with your readers, you can call on them to share the content you have provided in different networks.
Beyond the Basics: Advanced SEO for Maximized Savings
When you’ve mastered the basics, feel free to go on to more advanced strategies.
Advanced SEO Strategies
For those who want to go beyond basic SEO, advanced strategies can offer even more benefits. For example, you can use schema markup to enhance your search engine listings, making them more attractive to users. Additionally, implementing structured data can help search engines better understand your content, potentially leading to rich snippets that make your listings stand out even more. Online calculators and other interactive tools can also draw more traffic to your site while providing valuable resources for your audience. These advanced strategies require more technical knowledge but can offer significant advantages in driving traffic and savings.
Leveraging Longtail Keywords
Longtail keywords are longer and more specific keyword phrases. They may have lower search volume, but they often have higher conversion rates. Using longtail keywords can help you tap into niche markets, maximizing your financial gains. Moreover, these keywords often face less competition, allowing your content to rank higher in search results and attract a more targeted audience.
The Role of Social Media and SEO
Social media can significantly amplify your SEO efforts. Platforms like Facebook and Instagram can drive a massive amount of traffic to your site. Optimize your social media profiles and share your content regularly to increase your visibility. Furthermore, engaging with your audience on social media can lead to more shares and backlinks, which are valuable for improving your search engine rankings. Social signals also contribute to building your brand’s authority and trustworthiness online.
SEO: One Way to Pay for College
It’s crucial to understand that the right approaches to SEO implementation can be instrumental in attaining the desired results to enhance college savings. By performing extensive keyword search, employing on-page optimization and other more technical SEO procedures and using the influence of social media, you can find effective ways of improving your Internet presence. Quality and relevant content will attract visitors, increasing traffic.
By constantly updating the work approach and studying the tendencies in SEO, you can develop a bulletproof strategy that can provide maximum visibility and, at the same time, help you save for your child’s educational dreams. Accept the current state of SEO and let it help you adapt to the changes so as to achieve your intended college savings goals.
As parents of high school children, financial freedom becomes even more vital.
It’s a time when expenses increase, college looms on the horizon, and the need for a secure financial future for the family becomes paramount.
Smart investment strategies can provide the means to ensure stability and growth, offering peace of mind and the ability to support your children’s dreams and aspirations.
By carefully selecting and managing investments, parents can create a solid financial foundation that supports both current needs and future goals.
Investing in real estate is a tried-and-true method for building wealth and achieving financial security. It provides numerous benefits such as passive income, potential property appreciation, and tax advantages.
For parents of high school children, real estate investments can be a powerful tool to bolster their financial portfolio and prepare for upcoming expenses like college tuition.
Buy-and-Hold Strategy
The buy and hold strategy involves purchasing properties and holding them for an extended period, allowing for steady rental income and appreciation in value.
Here’s how this strategy can benefit parents:
Generating passive income: Rental income can provide a consistent cash flow, helping to cover educational expenses and other family needs. For example, purchasing a duplex and renting out one side while living in the other can offset mortgage costs, freeing up money for college savings.
Appreciation: Over time, properties generally increase in value, offering a significant return on investment that can support long-term goals. A property bought in a growing neighborhood could significantly appreciate, providing capital that can be used for college tuition or other major expenses.
Tax benefits: Real estate investments come with various tax advantages, such as deductions on mortgage interest, property taxes, and depreciation, which can help in managing overall financial health. Using a tax advisor to navigate these deductions can optimize your tax returns, maximizing your investment benefits.
Real Estate Investment Trusts (REITs)
For parents looking to invest in real estate without the demands of property management, Real Estate Investment Trusts (REITs) offer a practical alternative.
REITs are companies that own, operate, or finance income-producing real estate. Investing in REITs allows parents to:
Diversify portfolio: REITs provide access to a diversified portfolio of real estate assets, reducing investment risk. For example, REITs like Vanguard Real Estate ETF offer exposure to various property types, from residential to commercial.
Liquidity: Unlike direct property investments, REITs are traded on major stock exchanges, offering greater liquidity. This means you can easily buy and sell REIT shares as needed, which is beneficial when planning for near-term expenses like college fees.
Dividend income: REITs are required to distribute at least 90% of their taxable income to shareholders, providing a reliable source of passive income that can aid in funding education or other significant expenses. An example is Realty Income Corporation, known for its consistent monthly dividend payouts.
Fix-and-Flip Strategy
The fix-and-flip strategy involves purchasing properties, renovating them, and selling them for a profit.
While this approach can be lucrative, it requires careful planning and execution. For parents considering this strategy:
Conduct thorough research: Identify properties with potential for improvement in neighborhoods with strong resale value. For instance, using tools like Zillow or Redfin to find undervalued homes in up-and-coming areas can help identify good investment opportunities.
Budget wisely: Ensure renovation costs and timeframes are realistic to avoid financial strain. Accurate budgeting is paramount for maintaining financial stability while undertaking such projects. Using renovation budgeting software like Homezada can help manage costs effectively.
Leverage expertise: Working with experienced contractors and real estate agents can enhance the success of fix and flip projects, reducing the risk and increasing profitability. Hiring a reliable contractor with a proven track record ensures quality work and adherence to budgets and timelines.
These plans offer significant tax advantages and flexible investment options, making them an ideal choice for building a college fund.
Understanding the various strategies and benefits associated with 529 plans can help parents maximize their savings and ensure they are well-prepared for future educational expenses.
Age-Based Investment Strategies
529 plans often offer age-based investment options, which automatically adjust the asset allocation as your child approaches college age.
This strategy is designed to maximize growth potential during the early years and reduce risk as the time to college draws nearer.
Early years (newborn to elementary school): During the early years, it is beneficial to have a higher allocation in stocks (about 80% to 100%) to take advantage of growth opportunities. As your child is still many years away from college, this aggressive approach can yield higher returns despite the higher risk associated with stocks.
Middle school years: As your child enters middle school, the investment strategy should start shifting towards more conservative assets. A balanced approach, such as 60% bonds and 40% stocks, helps in securing the gains made during the earlier years while still allowing for some growth.
High school years: In high school, which is of special interest to us, it’s very important to minimize risk. A conservative mix of 70% to 80% in bonds and 20% to 30% in stocks is recommended. This helps protect your investment from market volatility as you near the time when you will need to use these funds for college expenses.
Tax Benefits and Rollover Options
One of the primary advantages of 529 plans is the tax-free growth and tax-free withdrawals for qualified education expenses. Starting in 2024, unused 529 funds can be rolled over into a Roth IRA for the beneficiary, providing more flexibility if the funds are not needed for education.
This rollover option allows up to $35,000 to be moved into a Roth IRA without penalties, provided the 529 account has been open for at least 15 years.
Impact on Financial Aid
While 529 plans are considered in financial aid calculations, they generally have a minimal impact when owned by the parents.
Only up to 5.64% of the account’s value is considered in the Expected Family Contribution (EFC) for financial aid purposes. In contrast, if the student owns the account, 20% of its value can be counted.
It’s usually more advantageous for the parent to own the 529 account to maximize financial aid eligibility.
Selecting the Right 529 Plan
Choosing the right 529 plan involves considering various factors, such as state tax benefits, fees, and investment options.
Many states offer tax deductions or credits for contributions to their 529 plans, making it beneficial to invest in your home state’s plan if these benefits are available.
Some plans have lower fees, which can significantly impact the growth of your savings over time .
When selecting a plan, it’s also important to look at the investment options and whether they align with your risk tolerance and financial goals.
Age-based portfolios are ideal for those who prefer a “set it and forget it” approach, while static portfolios may appeal to more hands-on investors.
Key Takeaway
By integrating a 529 College Savings Plan with strategic real estate investments, parents can create a robust financial plan that addresses both immediate and future educational needs for their children.
Seeking professional financial advice and regularly reviewing investment portfolios ensures optimal growth and adaptability to changing financial landscapes.
