Where to Stash Your College Savings Cash!

You are ready to begin investing for your children’s education – kudos to you! It’s understandable that deciding where to save may be a tough decision to make. We’re here to help! Below are four college savings options for you to evaluate, consider which one or the combination that is best for your family.

529 College Savings Plans

529 College Savings plans are a very attractive solution to saving for college. They were created in 1996 in section 529 of the IRS code – hence the name. They are essentially mutual funds for college savings. Therefore, they contain a mix of investments in stocks, bonds, real estate, and money market funds. Over the life of the account, contribution limits range from $100,000 - $300,000 based on the rules of your state and your money grows tax free. You don’t have to buy a 529 only in the state you live in; research which state offers the best plan for your goals and you can invest there. Another bonus is the low investment minimums – you can open an account with as little as $25 in most cases.  There’s no age limit on beneficiaries or time limit on distributions..... (More)

-Dorethia 

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Choosing a College: In-State vs. Private Universities....

So you are thinking about what type of college your child might attend and calculating the costs. Should they go to public, should they go to private and how will you pay for either one? It’s important to be prepared and intentional, as planning for college also affects how quickly you reach other personal finance goals. We all know that private schools can cost up to 3x’s more than a public university.   Therefore not only consider  your budget, but also make sure the school is a good fit for your child’s personality and study habits.  Here are a few tips   to help you along the way.

Know the difference! 

• Public colleges – (average tuition, room/board range: 13,000 - $30,000 per year) funded by the State, therefore tuition isn't the only source of funding allowing for lower tuition rates, more scholarships available.  In-state college is going to be cheaper as they give preference to residents. 

• Private colleges – (average tuition, room/board range: 35,000 – 50,000 per year) funded by tuition and ... (More)

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College Savings: You Don't Have to Be Rich, You Just Need a Plan!

Here's another post from my column over at Adaptu.com (@Adaptu on Twitter).. I write about all things college savings related.. check it out and be sure to comment!

One question I get all the time is ‘when is a good time to start saving for my child’s education?’ My answer – as soon as you can! Whether your children are toddlers or teenagers it’s never too late or too early to start saving for college. Of course the amount you can save is based on your budget and household expenses, but it is important to set a goal, even if you will have to begin later. Don't allow the costs of college to overwhelm you, do what you can. Create a strategy for where you are now, and stick to it.

 Two key things you need to consider are:

1. How long you have before your child/children graduate high school &.....
2. How much you can afford to set aside each month

Let’s just say the average cost of college whether private or public is $25,000 per year. Remember this amount fluctuates depending on the school.  It also doesn't take into consideration inflation or annual tuition increases - but it’s a good starting point, so let’s crunch the numbers.... (More)

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Earn Extra Money! Tips from MochaMoney.com

Alonzo Peters is founder of MochaMoney.com, a personal finance website dedicated to helping people achieve financial independence. (Link: www.MochaMoney.com) Alonzo is part of our #MoneyChat FAM and always offers practical financial insight. In this post he shares tips he has used to earn extra money! Sit back, relax and take notes!

A $1,200 BOOK? WHO KNEW?

As a graduate student I made extra money by reselling the books I found at thrift stores on Amazon. Amazon allows people to sell their used books. You can check the bottom of their webpages for more info. Of course you have to sift through the books and you're not always guaranteed of finding something. Using a smartphone you can type in a book's 10 digit or 13 digit ISBN code in the Amazon search box. The returned results show you how much the book is selling for new and used. Use the used price to determine if the book is worth buying for resale. 

You can also use a professional scouting tool that reads the ISBN bar code with a laser allowing you to know instantly if a book is worth buying to resale. Check out neatoscan.com or asellertool.com

I'd generally at least find a few books at each thrift store that I could sell for $10, $20, $50 or more. One of my best finds was a rare business title which I bought for a dollar and was able to sell for $1,200 on Amazon. Of course I was in a big city so I had over 30 thrift stores to chose from. 

EBAY'ers?!

The second way I saw people make serious cash was by reselling handbags and upscale clothes they purchased from thrift stores. I called them professional Ebay-ers. One older gentleman I got to know would routinely buy Gucci and other name brand handbags for $30 or $40 bucks and sell them on Ebay for $400, $500 or more. Of course he had to know his handbags and had to be able to differentiate the real thing from the knock-offs.  

Others did the same thing for high end clothes. One of their tricks was to wait in the back of the store near where the employees sorted the donations. Then as the donations were wheeled out to be placed on the store racks the Ebay-ers would intercept them picking out the best merchandise before it even got on the shelves. Eventually the employers would just park the rack with the newly sorted donations right in front of the Ebay-ers and return to take the rack to the floor after the Ebay-ers were done. This happened at most of the thrift stores I frequented. 

E = MC^2, There vs. Their 

Finally, tutoring is a great way to make money. Parents are always searching for ways to help their children do well in school. It can cover the basics from simple algebra or English all the way up to AP Chemistry. Almost anyone is able to tutor something and the pay can be pretty decent. I would suggest that people tutor at a neutral site just for safety reason. Libraries make a great location. 

Dorethia's note: When you think of tutoring also think about other skills/talents you have. Example - excellent at football, basketball, soccer, swimming, etc.? Parents and young athletes are looking for people like you to work one on one at a discounted price. 

Be sure to connect with Alonzo at MochaMoney.com! Now - GO FORTH and MAKE THAT MONEY!!! 

Join Alonzo and the rest of the #MoneyChat FAM every Monday night 8-9p. ET. Real talk about all things money and business!

Earning Extra Cash! #MoneyChat'ers Share What Works!

Even if you have been fortunate enough not to have ever faced a financial emergency (WOW), at some point in all our lives we've needed to increase our income for one reason or another. It could have been to cover our monthly bills, get out of debt, go back to school, plan a vacation, etc. On Monday night's #Moneychat we shared what has worked for us when times get tight. Check it out..

@learntech I had a typing service. I made a KILLING typing papers for MBA & nursing students. #moneychat  (Wow - I forgot I did this too! You can charge $1.50 - $2.00 per page!)

 @Crystalh8725: #MoneyChat I know this is old fashioned but I do sewing and tailoring!

(not old fashioned at all - people still need these services! Great skill to have!)

@iammsparker: http://Elance.com is a great site. I know a few people who have earned good $$$. #moneychat

@learntech Put your lawnmower & blower to use by doing a little neighborhood yard work. #moneychat #moneymakingideas

@kevettechats A good way to make extra money is by crafting. People are always looking for unique personal gifts and you may find a niche. Also if you know how to put together a good resume you can do it for others. Some people would just rather not do it themselves. #moneychat

@LatoniyaAJones Serving at a friend, colleague, or others' party adds pizzazz and a little cash! #moneychat

@OurMochaMoney I used to troll thrift stores for books to resell on Amazon. 'Friends of the library' sales are also great place to find great books to re-sell  #moneychat

Reselling thrift store designer handbags and clothes on Ebay is also quick way to make some $. Quick tip - thrift workers usually have area in back where stuff is sorted. Here is where all the Ebay "entrepreneurs" wait so they get the first crack at the 'good stuff'. 

@rj1975 I must agree. Setting up shop with EBay or Amazon could be easy money. Just be aware of shipping costs #moneychat

@DWesterberg:  I think freelance work has much potential - offer a try & buy - target potential customers.  Do micro marketing - watch a business: web, social media, content, optimization, etc. and make a suggestion w/offer to help. Important to know what you're competing against (e.g. pricing, quality of work) and articulate your competitive differentiator.

@learntech Good at math? Good with kids? Tutoring in #STEM subjects can make you $$$ #moneychat #moneymakingideas

@Derschaun has done voice overs and background singing  #moneychat    (she did a voice over on a project for me too, she's great!)

@CardHelp:#moneychat seriously, little things: brew your own coffee- save $60/month. Put that in savings. Rechargeable batteries, etc. Find out when trash day is in rich neighborhoods. People throw out perfectly good stuff you can resell. I've done it!

@OurMochaMoney If you know Wordpress, Excel, Photoshop, etc. there are people who would pay you to teach them those skills #moneychat

@iammsparker Babysitting sill works. Parents or a single parent who need a night out for themselves. Watch their kids Sat. night & earn $$. 

@MoneyChatLive I also recommend overnight babysitting - kids sleep, parents pick up after work in a.m. #easymoney #moneychat

@iammsparker Ohh! Paid experiments or focus groups are a great way to make xtra $$. I did that ALOT in college. Paid my cell bill w/ it. #moneychat

@Crystalh8725: #moneychat I did a post on focus groups!    http://bit.ly/wytuSC

@DWesterberg #moneychat I've done babysitting, piece meal assembly work, after-school pickup & dropoff, retail - all easy to do when bigger goal in mind.

(That's right, no time for pride, only time to MAKE IT HAPPEN!)

@learntech: Something else you can do is offer a good deal to existing clients. ex., Pay for 3 months, get 1 free #moneychat #extracash

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Alright, enough from us - what have YOU done to earn extra cash to reach a goal? Disclaimer: No spammy stuff please, thanks ~mgmt~.

Why don't YOU join us every Monday night 8-9p. ET for #MoneyCHAT! Real talk about money and biz! 

Your Financial Coach!

-Dorethia

www.connercoaching.com

On Twitter? #Follow: @DorethiaConner & @MoneyChatLive