Planning for your child's college education the right way

If you are like most parents, you want your child to go to college and receive the best education possible. You know that receiving a good education will make your child a more well-rounded person and provide him with better job opportunities. College, however, is not cheap. A four-year college can end up costing you tens of thousands of dollars, so you have to plan ahead to avoid frustration in the future. Here are some different ways you can save for your child's college education costs.

Contribute part of your tax refund

If you receive a decent amount of money from your tax return each year, you should consider putting at least a portion of it toward your child's college education fund. After you have paid necessary bills with the refund, consider putting the rest of it toward your child's education fund. Doing this every year can help a lot in the long run.

Consider a 529 Plan

Many parents are enrolling in 529 plans to save money for their child's college education. A 529 plan offers an easy way to save for your child's education and comes with numerous benefits. One of the benefits of opening up a 529 account is that the earnings are exempt from federal taxes if they are withdrawn for educational purposes. There are two types of 529 plans. The first option allows you to pay your child's college in advance at current tuition rates. The second option allows you to invest your money in a tax-deferred account that can be used later to pay for college at future tuition charges.

Open an education savings account

Opening up an education savings account is another great way to save for your child's college eduction. This plan is different from the 529 plan because it allows you to use the funds toward any form of education including private elementary or secondary school. Withdrawals from this account are tax free as long as they are used for educational purposes.

Save through Upromise

Upromise is a subsidiary of Sallie Mae and allows members to earn money for college by purchasing qualifying items from restaurants, grocery stores, gas stations and online retailers. The money that you earn from this program can go into a 529 plan or savings account.

Find out about reward features on your credit cards

If you often use credit cards, you should find out about their reward features. If one of your credit cards has a cash back feature, take advantage of it. Putting the cash you earn from purchases toward your child's college education fund will help you save thousands of dollars over the years.

Do not allow the rising costs of college get you down. There are many easy and affordable ways to save for your child's education. You just have to be willing to put in the effort. If you start saving early for your child's education, you should have no problem paying for his college in full. Although your child might not recognize your efforts right now, he will appreciate it in the future when he is not in debt from taking out too many student loans.

This article was written on behalf of Target Insurance Services, a provider of general liability insuranceand contractors insuranceto help protect you from unwanted surprises that may disrupt your life.