Saving for your kids' education can be a daunting task, but it doesn't have to be. Finance expert Gail Vaz-Oxlade shares some of her best tips to save those precious dollars for school.
Save Your Savings
If you save five dollars by shopping the sales, using coupons or being a smart shopper, take that five dollars and stick it in your savings container at home. If you don't do that, you'll end up spending it somewhere else and then you won't have saved a penny. There are some banks that have mobile that allow you to enter how much you saved on a purchase for it to automatically transfer that amount from your chequing account to your savings, all via your smart phone.
Start a Fast-Food Tax
Keep a tin in your car and every time you pick up a coffee, grab a sandwich or munch on a muffin, drop a buck in the tin. This is your Fast-Food Tax. Hey, if you can find money for the drive through, you can find money to save for your kid's future.
Raise Deductibles on Home and Car Insurance
Once you've got your emergency fund in place, raise the deductibles on your car and home insurance. You wouldn't make a claim for under $1,000 (if you did, you would soon find your insurance costs go through the roof), so why have a $250 or $500 deductible?
Do Not Over-Program your Kids
Eliminate one extracurricular activity a week from your child's schedule. We have a tendency to over-program for our kids. Help them learn to be their own best friend and entertain themselves by reading and doing arts. Solo play gives kids time to think and use their imaginations.
Save Your Extra Paycheque
Set up your budget to accomodate two or four paycheques a month, depending on your pay schedule. Some months you may get an extra cheque, and that can be a boon to your kids' educational savings.