This article is the first of a five-part series on finding college money,Young Boy with Penny whether for you or your child. In this article, you will see how pennies a day can quickly add up to more then $6,000 in free college money, and where that college money can come from. Begin socking that money away into a 4.5% interest-bearing savings account or CD at your local bank, and that $6,000 will be more then $11,000 by the time your child goes to school. Save an additional $25 a month, and you will have accumulated more then $16,000 in an 18-year period. Not bad for a few pennies here and there.

  1. AUTOMATE YOUR SAVINGS: Many banks nowadays are offering free transfer programs from checking to savings accounts. Some banks will even waive their fees if you sign up for this feature. Other banks are more then happy to transfer money from an outside bank and deposit it into one of their accounts without ever charging you a dime. The minimum monthly transfer amount is usually $25 (less then a dollar a day) and is a painless way to save for your child or other emergency expenses. Sharebuilder.com (who recently merged with ING Direct) will let you transfer money whenever you want directly into their money market account (which currently pays between 4-5% interest), or buy any stocks that you designate for as little as $4. The account is fee-free and is an excellent way to build a college fund.
    1. After 18 years: continuous transfers of $25 for at 4.5% interest will result in a college fund just short of $8,000 ($5,400 with no interest). That’s $2,600 of free money from your bank just for squirreling away the price of a couple movie tickets. Now imagine how much more if you asked “the grandparents” to do the same thing.

  1. CASH FOR CANS: I know cashing in cans may seem time consuming and trite, but it can actually be a good way to save up pennies for college. Imagine if you, by yourself, drink one can of soda a day. If you cash in each can, you would average about $0.025 per can. At the end of one year, that would be an additional $9.13. Not much I know, but times that by 18 years, and you would receive an additional $164.25. If you drink two sodas a day, you can double that number. For a family of four at one soda a day, that would be an additional $657. Why throw out that much money when you can give it to your child.
    1. After 18 years: A family of four’s one-a-day soda consumption would equal $657. (With interest of 4.5%, this would be an additional $970.)

  1. UPROMISE.COM: If you have heard about Upromise, but have not signed up for it, then you are a fool. And not a “Motley Fool.” Upromise is a company that offers free college money to anyone and everyone who wants it. There are no fees to join, and it is an actual bank account. However, you do not need to enter any credit card information or apply for their credit card to make money. You simply register your local grocery store membership card and every time you purchase any of their affiliates’ products (like Nestle, Tylenol, C&H Sugar, and Enfamil), you will receive up to 5% back. This is money you are already spending but not reclaiming. If you do register any credit cards or debit cards, you can also get up $0.01 per gallon rebated from specific gas stations, 8% back at various dining locations, and up to 25% for shopping through their website. -Download the Upromise toolbar, and you can find thousands of the best-priced items at any of your favorite stores while also receiving college money. If you do apply for their credit card, you can get 1-10% back on all your purchases in addition to what you are already earning. This money can be used for any child, whether your own or a friend’s, and you can invite your friends and family to help you save. If you have no child, you can put the money towards your own student loans and get out of debt that much faster.
    1. After 18 years: With groceries, gas, dining and an Upromise credit card, you could easily save up $150 annually, resulting in an additional $2,700. (With interest of 4.5%, it would be just shy of $4,000.)

Upromise Logo

  1. SIGN UP FOR FREE CASH AT BANKS: ING Direct is one of the many banks that offer sign up incentives. Each year at tax time, they try to entice people to open accounts by matching $25 or $50 deposits. The general rule is that you have to keep the account open for a period of 90 days to one year. Other banks will offer cash incentives when you refer people or are referred by one of their customers. Find at least one of these programs each year and you would have an additional $450-900 by the time your child is ready to go to college.
    1. After 18 years: $450 at 4.5% interest is an additional $640. $900 at 4.5% interest is an additional $1,330.

  1. THE GRANDPARENTS: Have you ever wondered what the grandparents do with all their spare change? While its true that some grandparents will frugally save every spare penny for themselves, many would be more then willing to donate it to a grandchild’s college fund. If they are willing to donate their spare change, it could turn into hundreds very quickly. The first time my mother and stepfather handed me their half-filled piggy bank, there ended up being more then $85 in it after eight months. They were as shocked as I was since they had removed all of the quarters for their “Las Vegas Slot” fund. You can either purchase a coin sorter for about $20, or drop by a Coinstar machine at your local grocery store and you will not have to waste a single moment counting coins. Over the course of 18 years, you can have thousands of dollars more for your child’s college fund.
    1. After 18 years: An average of $100 a year in spare change would equal $1,800. With interest of 4.5%, this would be an additional $2,660.

 

Now that you have Step One of saving your student’s college education, click here to read the second article “Free College Money Part 2:  Tax Programs”.  You can read about eight different tax programs set up to save students thousands more dollars on college expenses. 



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