Tuition Rewards Review

The SAGE Scholars Tuition Rewards program let’s you earn free points that can be redeemed as scholarships at over 280 participating private colleges and universities!

If you save or invest with one of their financial partners, or are employed at one of their employer partners, you can earn Tuition Rewards points.

Tuition Rewards – How it Works

• How do I earn points? In most cases you earn Tuition Rewards at a rate of 5% annually based on the value of your investments with Tuition Rewards partners. As your assets appreciate, so do your points.
• How much are points worth? 1 Point = $1.00 in scholarship
• How do I use my points? If a student receives 10,000 Tuition Reward Points he or she is guaranteed to receive scholarships and other discounts of at least $10,000, spread evenly over four years ($2,500 per year).
• What is the maximum? The maximum scholarship varies by college (currently it is over $40,000). Participating schools are obligated to accept 25% of the cost of tuition spread over four years.

Tuition Rewards Details

What colleges participate in Tuition Rewards? Only private colleges that award “non-need” discounts are eligible to join the Tuition Rewards college consortium. This list of participating schools will help you see if your chosen school partners with Tuition Rewards.

What financial partners does Tuition Rewards work with? There are a variety of credit unions, 529 plans, and banks that partner with Tuition Rewards.

How does Tuition Rewards affect my financial aid? Colleges can use the tuition reduction as part of, or separate from, any financial aid packages so you may want to check with your school specifically to make sure it doesn’t interfere with any financial planning you are doing.

Tuition Rewards Overall

This seems like a great, easy way to boost your college savings, particularly if you live in Pennsylvania or Wisconsin as you’ll get a tax break on your 529 plan plus this added benefit!

One concern is that the list of colleges is relatively small and a good deal of elite, expensive ones are excluded from the program. If your child chooses a school not on Tuition Rewards’ list, the program won’t help you at all. However, hopefully it will continue to grow and include more schools over the next few years. It seems like a no-brainer to sign up. Perhaps you’ll get lucky and this will be a big boon to your college savings!

A Note From Madison: We signed up for SAGE a few years ago and have already built up quite a few points. While I’m hoping that our kids will go to public schools and we won’t need the points, it will be nice to have a discount already built up in case they do happen to choose one of the private schools on the list. Hopefully they’ll also expand the list of 529 plans soon so more people will be able to take advantage of the free points.

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Time to learn how to use some of our previous 0% Balance Transfer offers in combination with your state’s 529 plan for some big savings!

You can use this strategy to create a self-managed monthly tuition payment plan or earn some extra interest on money borrowed at 0%!

How It Works

• Most 0% Balance Transfer offers that we’ve covered charge a 3% fee right now.
• Most state 529 plans, including the Ohio 529 College Advantage, offer a state income tax deduction on residents’ contributions.
• If your state income tax rate is equal to or higher than the transfer fee, you effectively eliminate the fee, getting a 0% (or better) loan.

New York Example

• A married couple earning $100,000 has an effective state tax rate of 6.85% and has 1 child going to college.
• The New York State 529 offers a deduction of up to $10,000 for married couples.
• The couple takes out a balance transfer of $10,000 for a fee of $300 (3%) & puts it in a 529 before using it towards the child’s tuition.
• When the couple files their 2010 taxes, they will save $685 (6.85% of $10,000) as a result of deducting the 529 contribution.
• Savings = $385!

More on the Strategy

Additional Savings. The great thing is that, in the above example, the savings is not limited to $385. The ability to pay the $10,000 over the term of the Balance Transfer Offer (instead of upfront) allows for savings in interest avoided by not taking a student loan, interest earned while keeping payoff money in a CD or savings account until it’s due or even just the peace of mind of having cash in the bank during a lean few months.

State Tax & Balance Transfer Rules. Your state income tax brackets, 529 deduction limits and balance transfer fees will vary so make sure you investigate them to determine whether this strategy will work for you.

More Cash Savings! You can take this strategy one step further and use your saved money to buy books with the Fidelity 2% Cash Back Credit Card and Ebates, earning even more cash back on purchases you have to make anyway!

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College Savings Plan Considerations

When choosing a savings plan, you should be aware of the following:

• Maximum contribution per year: Some savings vehicles limit the amount of money you can invest per year.
• Ownership restrictions: You may be able to put the account in your name or your child’s name.
• Financial aid impact: Some accounts are considered as assets for financial aid purposes, while others are not.
• Tax implications: Accounts may give a tax break at either contribution or distribution.

529 College Savings Plans

• Special characteristics: 529 plans are administered by states and help you qualify for both state and federal tax breaks. Account specifications differ from state to state. Many states (like Ohio) allow anyone to invest in their plan, but only offer state tax breaks to their own residents. 529s can be established for people of all ages and can pay for any post-secondary education expenses, including graduate or continuing education for a student of any age.
• Maximum contribution per year: None. Many states will cap total contributions somewhere around $300,000 per beneficiary. However, you should be aware that contributing more than $12,000 per year could trigger gift tax implications.
• Ownership restrictions: Account owners are those who open and fund the accounts, as well as choose the investments. Beneficiaries are those whose college expenses are paid by the account distributions. One person can be the owner on multiple accounts, each with one beneficiary. One beneficiary can benefit from multiple accounts. Each account can only have one beneficiary at a time, though the beneficiary can be changed. This is helpful if you open an account before your child is born, or want to transfer remaining funds if a child does not go to college or finishes college without spending the entire balance.
• Financial aid impact: 529 plans with the financial aid applicant as a beneficiary are considered in the financial aid process. All funds are considered available to help fund the expected family contribution.
• Tax implications: 529 contributions are often deductible for state income tax purposes when using home state plans. Distributions for qualified education expenses are tax-free. Distributions for other purposes will trigger a federal capital gains tax on any earnings equal to the owner’s tax rate plus a 10% penalty.

Coverdell Accounts

• Special characteristics: Coverdells are established for children under 18 at the time of funding. All funds must be spent or transferred to another beneficiary before the initial beneficiary reaches 30, or a penalty is assessed.
• Maximum contribution per year: $2,000 per beneficiary, even in multiple accounts with different owners.
• Ownership restrictions: In 2009, account owner income must not exceed $220,000 for owners who file joint taxes and $110,000 for single filers.
• Financial aid impact: All funds are considered available to help fund the expected family contribution.
• Tax implications: No deduction or exclusion for contributions. Distributions for qualified education expenses are tax-free. Distributions for other purposes will trigger a federal capital gains tax on any earnings equal to the owner’s tax rate plus a 10% penalty.

Roth IRAs

• Special characteristics: As you probably know, Roth IRAs are actually retirement accounts that allow for distributions before retirement age in certain situations. Roth IRAs can be attractive for education funding because there are no set beneficiaries and they do not impact financial aid awards. However, education distributions can be subject to taxes, unlike distributions for other purposes. Roth IRAs should not be used for education funding without careful consideration of the impact on your general financial health.
• Maximum contribution per year: $5,000 per year in 2009.
• Ownership restrictions: Eligibility to establish a Roth IRA phases out above a certain income ($166,000 for taxpayers filing jointly in 2009).
• Financial aid impact: Retirement accounts are not considered assets for financial aid purposes, meaning they will not reduce the amount of aid your student is eligible for.
• Tax implications: When used for qualified expenses, Roth IRA distributions will be subject to income tax but NOT the 10% penalty for non-qualified distributions. If the account owner is 59 ½ at the time of distribution, no tax or penalty applies.

Other Accounts

In addition to the vehicles above, you could choose to use a simple high-interest savings account or a taxable investment account. Keep in mind that these options may limit growth and/or tax benefits.

Wrap-up

Saving for college in advance is always a good idea, regardless of what vehicle you choose to use. With a little planning, you can minimize taxes, maximize financial aid, and help your child pay for college with as little damage to your wallet as possible.

While 529 accounts are the most common and make the most sense for the average investor, every option mentioned here can make sense in a particular situation. Consult your own financial advisor or a college savings expert to develop a college savings plan tailored to your financial situation.

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Depending on where a student goes to school, college can entail books, dorm costs, meal plans, parking, and travel to/from home – in addition to tuition. If you have a child now or plan to in the future, it is never too early to think about saving for college.

College Costs

According to CNNMoney.com, in 2008, the total costs of a 4-year private school topped $34,000. In-state public school cost about $14,000, while out-of-state public school landed in the middle at approximately $25,000. About $7,800 of the public school costs were due to room and board, so you can expect to save that much if your student lives at home.

Although inflation averages 3-4%, college costs can increase by as much as 7% each year. At that rate, college costs roughly double every 10 years.

Family Contribution and Developing a Savings Plan

Deciding how much you will contribute to your child’s education is a deeply personal decision. If you plan to pay for all or part of your child’s education, you should start thinking now about how much you will contribute. Here are some things to consider when deciding on how much to save, and how you will save it:

• Amount: Decide whether you want to give your child a flat amount or a percentage of college costs. If you give a flat amount, it will pay for less if your child chooses a private school. If you give your child a percentage of college costs, you will pay more if she chooses a more expensive school.
• Multiple children: If you have multiple children, decide what you consider “fair” when it comes to funding their educations – will you give them the same amount of money, regardless of what school they go to? What if one or more choose not to go to school?
• Your future: Your child can borrow for college, but you cannot borrow for retirement – so be sure you are saving adequately for your future before saving for your child’s college.
• Investment choices: As with any savings/investment plan, the amount you need to save each month or year depends on how much you want to have at the start of college, how old your child is now, and your rate of return. As with retirement, any blend of stocks and bonds should skew away from stocks as you get closer to the time you will have to withdraw the funds. Use this calculator to test various savings scenarios.
• Time horizon: Once you decide on your total contribution, you should start saving as much as you can as soon as possible, to allow the longest time for growth. Even if you can’t save as much as you’d like to, even $5 or $10 per month now will help ease the burden later.
• Savings options: College savings vehicles include 529 accounts, Coverdell accounts, Roth IRAs, or UGMA/UTMA accounts. Different savings vehicles impact financial aid eligibility in different ways. If you think your child may not attend school, delay school, or qualify for merit scholarships, you may want to choose a more flexible savings vehicle.

Come back tomorrow when I discuss various savings vehicles in detail!

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Photography: Graduation Cake Guy by CarbonNYC

After countless hours studying, late nights, final exams and some parties, now it’s time to head out into the “real world”… or at least that’s what everyone has been calling it as long as you can remember.

When moving on to the adult phase of your life, be sure to take care of your financial situation. Your actions now will have significant impact on how the rest of your life shapes up financially.

Many older adults look back and say the number one thing they wish they would have done differently was learned about money management while they were young. Here’s your chance to jump start your finances!

Financial Tips for New Grads

1. Get health care coverage immediately. If it hasn’t already, your parent’s health care coverage will probably end with your graduation. Get a quote for an individual health insurance plan or sign up with your new employer’s plan. Going without coverage could have a devastating effect on your finances if you have a severe illness or accident. Make this the first thing you do… and don’t put it off!
2. Get your own home and auto insurance. Now that you aren’t a student, you’ll need to get your own auto and renters insurance policies. Start by calling your current insurer, you might be eligible for a discount based on the length of time you’ve been with the company, but don’t forget to shop around to save on insurance premiums.
3. Save money for your future self. Join the retirement plan at work. If you are young and your company offers it, you may want to explore the Roth 401k at work. In addition to your plan at work, begin saving money on your own for both retirement and other goals. Now may be the perfect opportunity to save a lot and use the reverse savings strategy before you have lots of financial obligations (kids, house, etc.)
4. Start an emergency fund. Earmark some of your first dollars from your new job to build up a savings account to serve as an emergency fund. You never know when an emergency will hit, but it is inevitable.
5. Learn about taxes. What? I know, this isn’t a fun one. However, hopefully you’re going to go from a poor college student to an highly paid worker. With that luxury comes higher taxes. Educate yourself about taxes, and you’ll be able to take advantage of incentives and deductions to cut your tax bill. Pay particular attention to the student loan interest deduction and the savers credit for retirement savings contributions.
6. Begin payments on student loans. Begin paying your student loans right away. Your future self will thank you.
7. Handle credit cards wisely. Use credit cards carefully to earn cash rewards. Always pay your balance in full every month. If you ran up some credit card debt while in school, begin paying it off aggressively. To save interest while paying it off you may want to transfer the balance to a 0% balance transfer credit card or explore other ideas in how to payoff credit card debt.
8. Create savings goals. Before you commit your paycheck away, create savings goals. As a new grad, you may want to focus on retirement or a downpayment for a house.
9. Spend money slowly. It can be very tempting with a new job to buy a new car and rent a fancy apartment. Not so fast! Wait a few months to see how your finances work out. My husband found this out the hard way.
10. Follow your heart. Did you meet the man or woman of your dreams at school? If so, and you are planning a wedding in the future, don’t forget to check out frugal tips for the ring and the wedding.

Check out more tips for new grads in New Grads: 29 Money-Smart Tips.

This article was previously published in June 2008. It is reposted today with updates.

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It’s back! The extremely popular $25 sign up bonuses for the Ohio 529 College Advantage plan have returned.

When they ran the program last fall, it was one of the most popular Free Money Friday offers. For those of you that missed out, here’s your chance!

How to Earn Your $25 Referral Bonus

1. Open a new Ohio 529 College Advantage account with $25.
2. Enter the following referral code: 2323158
3. You will receive a $25 credit to your account within 7-10 business days after your account is established.
4. You must establish an account on or before May 31, 2009 in order to be eligible to receive the referral bonus.

Ohio 529 Plan Highlights

The Ohio plan is one of my favorites. We have nine accounts with them (but I’m sure I’ll open some more with the new promotion!) Here’s why:

• Low fees and investment options. You can invest in the Vanguard 500 index fund with a 0.19% expense ratio.
• No enrollment fee or maintenance fee.
• Low initial investment ($25), which means it’s easy for me to open accounts for my niece and other young children in our lives.
• You don’t have to live in Ohio to take advantage of it, although Ohio residents can take a tax deduction.
• If you don’t have kids, you can just use yourself as the beneficiary.

Sweeten the Deal

Once you sign up, you can earn even more by referring your family members. If you open an account for one child, you can refer yourself to open a second account for another child to earn an extra $25 in each account. ($25 referral + 2 x $25 sign up bonus = $75).

In addition, you can have multiple accounts for the same children, using different owners. Scott and I each have an account for ourselves, each other, and each of the kids (8 total in our family alone).

If you don’t have plans for college, you can withdraw your deposit and referral bonus five business days after it is deposited. (Just remember, earnings are subject to income tax when withdrawn, plus 10% additional federal tax.)

I get 20 referral bonuses, so I’ll monitor them closely. If you subscribe by email or feed, be sure to check back at Ohio 529 College Advantage $25 Sign Up Bonus, as I’ll update the code once it looks like I’m getting close to 20.

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I’ve mentioned before that we’ve opened about a dozen accounts there for Target Gift Cards in the past. There is no annual account maintenance fee and the majority of the index portfolios have 0.50% management fees. In fact, I actually maintain an account there for my niece.

How To Sign Up

• Register for the offer.
• Open your account.
• Sign up for automatic investing of $50 per month.

From the Terms and Conditions:

• Limit: two (2) Gift Cards per person. Each account must have a different designated beneficiary and be individually owned (no trust, custodial or other ownership arrangements).
• Allow 8-10 weeks (from date of qualification for Gift Card) for Gift Card delivery.
• The initial $50 automatic investment must be contributed and invested within 90 days after the account is opened.
• Offer ends December 31, 2008.

They’ve added a new twist this time: you must enroll in recurring deposits. Since you have to wait a couple months to get the card, it looks like you might need to contribute about $100-$150 to the account. That’s still a 33% return on your money.

If you were going to open an account anyways, it might be worthwhile to open it here. You can then roll it over to the plan you like. We usually open the accounts, then move them to the Ohio plan.

If you are looking for a 529 plan that you don’t have to set up recurring deposits, you can get $25 to open an account with the Ohio 529 Plan.

Update: CA Residents Only This offer has unfortunately been limited to California residents only. From the T&C: “Offer open only to individual legal residents of the State of California age 18 or older as of August 15, 2008.” Too bad, this was easy money in the past for everyone.

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My favorite 529 plan just got even better! The Ohio College Advantage 529 plan is giving out $25 sign up bonuses for friends and family. And you don’t have to live in Ohio to take advantage of it!

For those of you new to My Dollar Plan, every Friday is Free Money Friday! There is no better way to end the week than finding a free money deal!

Ohio 529 Plan Details

The Ohio plan is one of my favorites because of the low fees and investment options. You can invest in the Vanguard 500 index fund with 0.19% expense ratio. In addition to the low fund expenses, there is no enrollment fee or maintenance fee.

How to Earn Your Referral Bonus

1. Open a new 529 account with $25.
2. Enter the following referral code: 2323158
3. You will receive a $25 credit to your account within 7-10 business days after your account is established. (And I will get $25 for referring you.)
4. You must establish an account on or before December 15, 2008 in order to be eligible to receive the referral bonus.
5. Send your name and e-mail address so I can add you to my referral list.

Tips and Tricks

Refer Your family members. Sweeten the deal for multiple family members. If you open an account for one child, you can refer yourself to open a second account for another child to earn an extra $25 in each account. ($25 referral + 2 x $25 sign up bonus = $75)

No Kids? No Problem. Just use yourself as the beneficiary. (And refer your spouse for a second account if you want.)

No Plans for College? You can withdraw your deposit and referral bonus five business days after it is deposited. (Just remember, earnings are subject to income tax when withdrawn, plus 10% additional federal tax.)

Deduction for Ohio residents. Anyone can use the Ohio plan, but if you are a resident you can deduct contributions from Ohio income tax ($2,000 annually).

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1. Start saving for your future now! The earlier you start saving the more the wonders of compounding interest will work in your favor! – by Pete
2. Don’t pay extra on your student loans. You’re actually probably better off investing money in an index fund. If you can invest money that earns a higher interest rate than what you’re paying on your loans then you are better off investing. – by Matt
3. Use a rewards credit card. Use the cash rewards credit card as though it were a debit card, pay it off in full every month, and never have a larger balance on the card than you have in your bank account. - by Blaine Moore
4. Read a great book. Buy and read The Automatic Millionaire : A Powerful One-Step Plan to Live and Finish Rich by David Bach. It changed my life. – by MITBeta
5. Take advantage of free money. Start a 401K and contribute up to the percentage your employer matches. - by Thrifty Femme
6. Spend less than you earn. Keep living like a college student for as long as possible. – by No Debt Plan
7. Live with your parents. Live as cheaply as possible and if you can live at home with parents to avoid paying rent do it. - by Andrew
8. Save for retirement. It seems a million years away, but even just saving a LITTLE now makes a huge difference later. My kids are going to start saving in high school. – by paidtwice
9. Don’t buy a new car. I made that mistake and “owned” a 35k car making only 45k a year. What a mess that was. – by MyMoneyAdventure
10. Start your own business. Become an entrepreneur rather then work for “the man”. - by Joshua
11. Have fun! You’re young and have fewer commitments and obligations than you’ll have as you get older. Enjoy this time. – by Lance
12. Join the Peace Corps. I think it would have been exciting to do something like that. - by Mrs. Accountability
13. Buy used. Buy a used car, refurbished computer, etc. They’re as good as new, a lot still have most or all of the warranty, and the price difference is amazing! – by Pam Davis
14. Create a plan. I would recommend starting first with a financial plan that has prioritized goals, projected amount needed, and required savings needed. – by Ashley
15. Create an emergency fund. I’ve seen several of my college classmates struggling when something unexpected happens, even if it’s a relatively small thing. – by Nicole
16. Buy a house. Don’t throw money out the window on rent! Save up a down payment for something small (for example, a one bedroom condo) and gradually upgrade every few years as your earnings and your equity increase. - by Frugal Parent
17. Invest aggressively. Don’t be conservative with your investments. Time is the great equalizer when it comes to the market.. and you have the time to be aggressive. – by Jeremy
18. Live your life a little before you really settle and work. Travel, know people, learn about other cultures, broaden your minds, because life experiences are the only thing that are going to keep with us, no matter how old you get. – by Rafael
19. Continue learning. There is still a lot to learn out there. Graduation is not the end of learning but just the beginning. Learn to handle finances is one example. Just continue learning and apply what you learn to live a happy life. – by Arnold
20. Create a budget. Then track your spending for three months or so to get a feel for what you really spend. At this point look at how you are spending your money, does it fit with your financial plans? Adjust accordingly, look for ways to save money by being clear about the difference between a want and a need. - by Tonya
21. Save half. Save half of all raises, bonuses and financial windfalls until you can max out your company 401k and contribute the max to an IRA. – by Todd
22. Choose the right job. Choose the job that offers the most professional opportunity, not the job offer with the highest paycheck. The money will follow. – by Patrick
23. Buy cheap furniture. For new apartment dwellers, look to friends and family and craigslist to furnish your apartment cheaply. You can always replace the second hand stuff with Crate and Barrel, West Elm and Pottery Barn items when you earn the money. – by Marlene
24. Find some roommates. Resist the urge to get an apartment alone, instead find one or two good roommates. At this stage of your life you’re probably used to living with others, tough it out for your first year or two after graduation and you can save a ton of money in rent and utilities! – by One Frugal Girl
25. Learn from others. The most important thing I ever learned when it comes to money is the best rule of thumb when supporting yourself is to earn weekly what you put out in rent monthly. My grandmother taught me this and I will never forget it. – by Courtney
26. Travel. Travel while you’re still young and adventurous enough to do it cheaply. Work over the summer to save up enough for a plane ticket and see the world with a few friends. Once you start working you will never have a solid block of time to really just explore and rejuvenate yourself from the past several years of school. – by Sallie’s Niece
27. Work hard. Be patient, be vigilant, keep your eyes and ears open to learn. Your time at the top will come soon enough. If you take on the entitled act, then you’re going to find yourself jobless and broke and even farther from your lofty wishes/dreams! – by Peggy
28. Continue your education. Spend money on permanent and continuing education, e.g. self-improvement seminars and further training workshops! - by Philipp Grunwald
29. Read frugal books. Learn who Amy Dacyczyn is. Not every tip is meant for every person, especially if you don’t have children, but read her books to get some inspiration on cutting back and living a rich but frugal lifestyle. – by Mar

There were a total of 88 incredible tips for new grads! You can read all of tips here in the comments.

The The Life Skills Network is featuring tips for new graduates all week. Check out all the articles:

• 10 Financial Tips for New Grads for New Grads at My Dollar Plan
• 7 Common Interview Questions For The New Graduate at The Wisdom Journal
• Inexpensive Tips For A Greener Life After College at The Good Human
• Thursday: Tips for Furnishing Your First Place at Frugal Dad
• Friday: 5 Do’s and Don’ts Of Living The Good Life For New Grads at My Super-Charged Life

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Note: Now through June, Upromise is offering a $10 signup bonus!

What is it?

Upromise is a free service that helps families earn extra money for education. It’s that simple.

You earn rewards from partner companies when you buy certain products or services. Common rewards we earn are from buying gas and groceries, dining out, and shopping online.

Start Earning

Sign up at Upromise.

Add your credit cards. When you shop at participating restaurants, gas stations and stores, you will automatically earn money back on participating products. We use a gas reward credit card and double dip with the cashback and Upromise contributions.

Add grocery and drugstore cards. Whenever you buy groceries you will receive rewards for participating products. I’ve noticed that our grocery store will put little Upromise tags by selected products.

Sign up family and friends. We had grandparents register for accounts and the earnings go to our children. Every time they buy groceries a portion of their purchases are deposited into our account.

Explore more uses. In addition to the methods we have used, you can also earn rewards from shopping online, making travel plans, buying and selling real estate and financing or refinancing your mortgage.

Get 10% more. Use the Sallie Mae Savings account to get a 10% upromise bonus.

Redeem Rewards

The rewards are intended for education and can be deposited automatically into a 529 plan for your child. We’ve selected the Iowa plan.

However, if you don’t need the money for education, you can request a check! Here’s how to do it:

Send a written letter requesting a withdrawal with your full name and the exact amount that you would like to withdraw. If the amount is over $200 you will need to have the letter notarized or include a signature guarantee. Send the letter to:

Upromise
ATTN: Customer Care
P.O. Box 55555
Boston, MA 02205-5555

See all the free money articles in the series!

Check out others who are saving with Upromise:

• I Forgot To Register My New Debit Card To My Upromise Account! at No Credit Needed
• Signed up for Upromise at Single Guy Money

This article is featured in: Money Hacks Carnival #5 – Haute Couture Edition.

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Smart Money put an article together detailing 9 Ways to help you get more financial aid.

It cites the following costs:

The average total cost to attend a private, four-year institution — including tuition, fees, room and board — has increased 30% over the past five years, to $32,307 for the 2007-08 academic year, according to the College Board’s Annual Trends in College Pricing report. At four-year public colleges and universities, costs are 40% higher, averaging a current $13,589. While the amount of financial aid has also risen, it’s done so at a comparatively sluggish pace of 11%. During the 2006-07 academic year, the average package of loans and grants for undergraduates was $9,499.

Here’s the nine ways to help you get more financial aid:

1. Apply for aid ASAP
2. Play hard to get
3. Dig into offer details
4. Look long term
5. Study scholarship policies
6. Exploit school rivalries
7. Get the college in your corner
8. Request a hardship review
9. Keep asking

It may be too late for those headed to college in the fall, but here is another tip to add to the list. 

10. Plan Ahead

Before I entered high school I found out that my state offered a full tuition scholarship for the top 1% of students at each high school in the state.

I was able to do some research to find out that the percentages were calculated at my school using grade point average. If there was a tie, ACT scores were used to break the tie.

Because I was armed with the knowledge, I was able to secure one of the scholarships through the following steps:

• Earned a perfect grade point average
• Asked around to find out who else I was tied with
• Asked the others their ACT scores
• Retook the test to make sure that I had one of the top ACT scores to break the tie

Without planning, research, and action I probably wouldn’t have received the scholarship.

Other articles about college and financial aid:

• Looking to Attend College for Free? Try Harvard @ The Dough Roller
• Stanford Offers Free Tuition To Low and Middle-Income Families @ My Money Blog
• Dave Ramsey Baby Step 5 – College Funding For Children @ My Two Dollars
• Starting a College Fund @ Mommy Gets Paid

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Infants

Financial Strategies for Infants and Young Children @ My Dollar Plan

An informative list of all the financial topics to explore with a new baby in the house:

• Open a savings account and 529 plans.
• Get a piggy bank and organize savings bonds.
• Tax savings including the child tax credit, dependent care flexible spending, child tax rates and adjusting your W-4 form.
• Wills, trusts, beneficiaries and life insurance.
• Updating your budget.

Preschoolers

Teaching Preschoolers About Money @ Paid Twice

Jaimie is working on teaching her 3 year old 3 financial concepts:

• The concept of what money is, as far as values of coins and bills.
• Money can be exchanged for things we want.
• Money is also a way to earn time.

Jaimie sums it up: “Basically, I want my children to understand at a young age that money is something we need to take care of and use wisely, and that it isn’t the best idea to spend everything as soon as we get it.”

Children

Personal Finance for Children and Pre-Teens @ Being Frugal

Lynnae wants to make sure her children are financially prepared to survive in the real world. She has implemented the following plan:

• At age 6-9 the kids receive an allowance of 50 cents for each year of age, which is not tied to chores.  The children are required to tithe 10% of their allowance. They split the remainder in thirds: long term savings (for college or a car), short term savings (for a toy they might want), and spending money.
• At age 10-12 the kids are moved from an allowance to a monthly salary, loosely tied to chores. The kids are responsible for budgeting.

Lynnae states, “As a mom, I’m sure the mistakes will be hard for me to watch, but I’d rather have her make mistakes now when I can guide her, than later when the stakes are higher.”

Teenagers

Money Advice to My Teenage Son @ Debt Free Revolution

Ana advised her teenager to not finance a vehicle, and work hard for college scholarships, grants, and work-study programs. She reminds him to pay cash for college tuition and textbooks and stay far away from the credit card tables at school. In addition:

• Start saving for an emergency fund.
• Start saving for retirement as soon as you have some extra money.

Ana states, “Every parent wants his or her child to have a better life and be more successful, and I am no different.  I won’t be able to “bless” my son with actual money.  But I do hope I can lift the money ‘curse’ by teaching him a better way than what I learned at his age!”

Teach your teen the basics of money management @ Gather Little By Little

Glblguy has a new teenager in the house. Here’s what they did to get prepared:

• Set up a checking and savings account
• Help them set-up a budget
• Help find them a job
• Determine who’s paying for what?

Glblguy leaves us with these thoughts: “Teen years are also a critical time for instilling good financial habits. If you instill good habits in them now, they will continue these habits into their adult lives. Don’t miss this critically important time. Teach them what you know, discuss the mistakes you’ve made and the negative impact they’ve had on your life so they can learn.”

College Kids

College Money Matters @ Mrs. Micah

Mrs. Micah just finished college where scholarships covered 75% of her expenses. She shares the best financial moves to make while you are there:

• Don’t Stop Looking for Scholarships once in college.
• The Meal Plan and convenience store are a Rip-Off
• Pay Back Your Student Loan Leftovers
• Get an On-Campus Job
• Find Ways to Save Money on Clothes
• Some places, you might…but other times you really don’t need a car.
• Take a Personal Finance Class

Finally, Mrs. Micah reminds us not to get too stressed about money, if possible. ”College is a place where we learn, and learning from our mistakes is a big part of that. Relax, find ways to make frugality fun (or rather just do fun free stuff, don’t even think of it as frugal), hang out with your friends, and learn.”

The Twenties

Financial Advice for Your Twenties @ Remodeling This Life 

By 20 Emily owned property. By 28, she bought and sold 3 properties and had 2 kids, while living in 3 different states. Here’s what she wished she had known sooner or learned in her twenties:

• Stay out of credit card debt.
• This is the best age to be frugal.
• Understand and love compounding.
• Start an IRA if you haven’t yet and contribute the maximum annually.
• Learn to budget.
• Love living below your means.
• Borrow only for the absolute necessities.
• When you start investing in stocks and bonds use no-load index mutual funds.
• Do not be looking to jump in and out of investments!

Emily reminds us, “Above all else though, don’t forget to have fun. You’re only young once!”

Money Tips for the Twenty Something Crowd @ Cash Money Life

Patrick says the twenties are for learning how to make a budget, spend less than you earn, create good spending habits, and invest. Here’s his list of hot-topics for the twenties:

• Get out of debt
• Build an emergency fund
• Invest in yourself and your career
• Invest for your retirement
• Prepare for life changes
• Take calculated risks
• Live your life and enjoy it

Patrick says, “Life is not measured in dollar$ and ¢ents. Your 20’s is perhaps the most exciting decade in terms of pure excitement and change. Most people in the young 20’s have fewer obligations preventing them from going out and doing something spontaneous. Use this time to your advantage. Have fun. Live your life. Find yourself. Now is the best time to do it.”

The Thirties

The Chaotic Thirties@ Moolanomy

Pinyo navigates through a busy decade “where many of us buy our first home, get married, have our first child (or second, or third…), start savings for kids’ education, try to build retirement savings for ourselves, worry about our parents who are nearing or already in their retirement, and work hard to advance our careers.” He expands on the following topics:

• First Home
• Marriage
• Children and Family
• Saving Money for Retirement
• Saving Money for College
• Parents
• Career

Pinyo closes, “I hope you can see why the thirties is so chaotic, yet one of the most rewarding and important decade.”

Personal Finance Advice for Your 30′s @ My Two Dollars

David cuts right to the chase. “If you are already married and you don’t have children yet, the one huge piece of advice I can give you is to save your money. And save a lot of it.” He also adds some other tips and questions for the thirties:

• I would also make sure you get all that credit card debt paid off.
• Are you still carrying around student loan debt?
• Have you started saving for retirement?
• How are you for health insurance and life insurance?

He leaves us with the following thoughts: ”Your thirties are a great time – you have the ability to still do anything you want in life, you are young enough for any kind of adventure, you still have your full mobility, and you can still figure out how to play a video game.”

The Forties

40s: The Forty Year Olds’ Wakeup Call @ Credit Withdrawal

Randall reminds us that once ”the 40th birthday has come and gone, and you’re closer to retirement than ever. If you’re anything like the majority of Americans, you’ve been putting off serious retirement saving until ‘later’.” He categories the next steps accordingly: 

• For The Tortoises (Early Savers)
• For the Hares (Late Savers): Trim Expenses
• Plan for Life Expenses: College Expenses, Disposition of Property, Retired Life, and Leaving it Behind

And finally he states, “Plan for the future, but don’t forget to live life in the process.”

The Fifties

You’re in Your 50s – Wake Up and Start Saving @ Millionaire Money Habits

Ryan paints the following scenario, “You’re in your 50’s and all of your friends are starting to talk about their plans to take an early retirement and moving to the beach house in Florida they always dreamed about. You do the math and choke when you realize that if you want to retire at 65, you will need $1 million to produce a $40,000 income for the 25 years.” He goes over what you can do in your fifties if you realize you are short on money:

• People 50 and over have the option to contribute more money to their retirement plans.
• Delay retirement and work as long as you can. After that, you can still work part-time to supplement your income to reduce the amount of money you need to withdraw from your retirement accounts.
• Go heavy on a diversified stock portfolio.
• Consider downsizing and reducing your expenses.

He leaves us with his signature Millionaire Money Habit: “Funding your retirement for 25 or more years can be very costly and requires a sound plan. While $1 million will produce $40,000 in annual income for 25 years, that’s in today’s dollars. A 35-year-old today would need $3.25 million for the same relative income when inflation is taken into consideration. If you want to enjoy a comfortable retirement, don’t put retirement planning off another day.”

Retirement Objectives in your 50′s @ Credit Withdrawal

We returned to Randall for some additional thoughts about the fifties:

• If you’re turning 50 this year, that also means that Social Security will probably be around for you, in some form or another.
• It’s also time to simplify life even further.
• It’s ok to objectively think about where you might want to live.
• If you have some kids that don’t show any indications of leaving the nest anytime soon, it’s time “to start kicking a little butt.”

He reminds us: “There’s no time like the present to find new and interesting things to see and do. Do something you NEVER THOUGHT YOU’D DO. Go someplace you NEVER THOUGHT YOU’D GO TO. This is the time to explore those new vistas and activities you’ve always read about.”

The Sixties

In your 60’s? Use your financial freedom wisely @ Rocket Finance

Rocket wants us to take a closer look at our lifestyle in our sixties:

• Don’t just retire because you can, retire because you want to.
• Retirement is an opportunity to serve – family, humanity, God, and more.
• Happy retirees still have goals in life. What are yours?
• Frugal retirees have the opportunity to be philanthropic with their time.
• Look for opportunities to give advice (especially financial) to loved ones in your life.
• Remember your church in your estate plan.

He reminds us to: “Write down your thoughts about life – keep a journal.”

Easing into the Golden Years- the 60’s and Beyond @ Chance Favors

Ciaran says it’s time to “give yourself the gift of a full financial checkup. You need to take stock of what you have, prioritize what’s important and take the necessary measures to achieve those goals.” In addition he created a to do list for sexagenarians:

• Go and have a formal financial plan done, if you haven’t done so already!
• Determine your net worth
• Review your existing investment allocation
• Create a record keeping system
• Make sure you have prepared a will and updated your beneficiaries
• Analyze your cash flow
• Consider authorizing a power of attorney or creating a living will
• Review your Medicare coverage and consider the potential benefits of a Medigap policy
• Consider purchasing Long Term Care insurance
• Look to reduce your estate shrinkage

He concludes with: “After you’ve done all that, it’s time to sit back, relax and enjoy your golden years with nary a care in the world…”

Retirement

4% Withdrawal Rule for Retirement @ Quest For Four Pillars

Four Pillars answers the following retirement question: “How much can I withdraw without running out of money?” Simple – use the 4% rule. He adds some additional clarification:

• The 4% rule is really a guideline rather than a hard and fast rule.
• If your equities perform better than expected then you can spend a bit more than the 4% rule amount.
• If you encounter a bear market and the value of your portfolio drops then you should be prepared to cut back on the withdrawals.

He also included bonus material in a previous article: Why Retirees Need Equity In Their Portfolios.

Retirement in the UK@ Plonkee

Plonkee covers the state pension plan including 2 sets of rules depending on whether or not you retire before 2010. Plonkee goes on to cover:

• How to make up a shortfall
• NI credits and using a partner’s record
• Minimum income guarantee
• Final salary pensions (employer based)
• Buying an annuity
• Income drawdown

Plonkee explains in detail the UK retirement system. It’s an interesting read even if you aren’t from the UK to see how it’s done there!

Whew! We did it. Thanks to all the personal finance writers who participated. The final result is a great guide for everyone to use at any stage of life.

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Photography: Six clones (clowns?) v3 by Spigoo

Our oldest son just turned 2 and our youngest son is now 4 months. Here’s a summary of the financial strategies that I’ve been working on for them.

Get a Social Security Number. Do this right away and it will make all of the other strategies easier.

Open a High Yield Savings Account. Children often receive cash gifts for birthdays, holidays, etc. I’m in the process of setting up an ING DIRECT account for my youngest. I sent a referral from the 2-year-old’s account to the baby, so they will both earn bonus money. Open a savings account in under five minutes with no fees, no minimums and FDIC insurance for yourself or your kids at ING. Once you have one account open, refer other family members to earn the bonus money! Affinity Bank also offers a 10% savings account up to $500 for children in California.

Organize Savings Bonds. The kids have received numerous savings bonds from family members. I am converting them to electronic version to make it easier to track. Any paper bonds will be placed in our safe deposit box.

Contribute to a 529 Plan. Open a 529 account if you plan on saving money to help pay for college for your children. I calculated how much we want to save for college for our baby and I am adding it to the accounts we have already established. If you haven’t set up an account yet, here’s how.

Help relatives set up 529 plans. If grandparents (aunts, uncles, etc.) are interested in contributing to your kids’ college funds help them set up an account of their own naming your child as the beneficiary. They can then take a state tax deduction if they live in a state that offers it.

Plan your investments. While the kids’ money has a similar asset allocation to our own, I plan to add some child friendly companies that our kids will recognize when they are older.

Claim Your Tax Savings. Claim the child tax credit on your taxes. As long as your baby was born on or before December 31, you are eligible for the entire tax credit.

Change your withholding. If the child tax credit above will result in a $1,000 refund for you, change your W-4 to have less money withheld in your paycheck.

Enroll in dependent care flexible spending. If you plan on using day care or a babysitter you can set aside $5,000 per year to pay for childcare pre-tax. You can change the amount mid-year if your childcare provider changes or the rates change.

Maximize zero tax for children. But beware of the Kiddie tax. Children owe no tax on the first $850 of earnings which creates a great opportunity to maximize income shifting. Earnings between $851 – $1,700 are taxed at the child’s rate and above that it will be taxed at the parent’s tax rate.

Modify wills and trusts. In the event that both my husband and I pass away, we created a will naming our children as beneficiaries. The will creates trust funds for our children that allow them access at age 25. This is an area that I don’t know whole lot about, so I am planning to spend some time in the next few years educating myself on this topic. I’ll be sure to share what I learn as I go.

Update beneficiaries. Change beneficiaries on life insurance policies or any accounts that are not included in the will. We live in a community property state, so my husband and I are listed as primaries on each other’s accounts. The children are listed as secondary beneficiaries. In addition, our children are listed as beneficiaries on other family member’s accounts.

Buy life insurance on yourself. Determine how much you need to support your children in the event that something happens to you or your spouse.

Don’t buy life insurance on your kids. It’s a waste of money. Instead use that money towards one of the previous strategies.

Get a piggy bank. Pick one that is fun to put money in and the pig should fill up quicker!

Update your budget. Diapers, formula and daycare are the big ones for us. Don’t forget other areas of your budget that were impacted by adding a baby to the family.

Sign up for mailing lists. Contact the manufacturers of the products you use most (diapers, formula, baby food) and retail companies (Toys R Us, Gymboree) to get on mailing lists. Coupons will start showing up in your mailbox.

Use cashback programs. Use the cashback programs to help fund the college plans. Upromise and the Sallie Mae Upromise account are both geared towards saving for college.

Action Plan

It’s never too early to start saving and investing for your children. While we are building their accounts we have also established specific purposes for the money; we do not intend for them to be able to spend the money freely at this point.

What are you doing for your children financially?

Here are all the articles in The Money Matters for All Ages series. The entire series is also available to download in a free e-book.

• Infants: Financial Strategies for Infants and Young Children @ My Dollar Plan
• Tiny Tots: Teaching Preschoolers About Money @ Paid Twice
• Pre-teen: Personal Finance for Children and Pre-Teens @ Being Frugal
• Teenagers:
  • Money Advice to My Teenage Son @ Debt Free Revolution
  • Teach your teen the basics of money management @Gather Little By Little
• College Age: College Money Matters @ Mrs. Micah
• 20s:
  • Financial Advice for Your Twenties @ Remodeling This Life
  • Money Tips for the Twenty Something Crowd @ Cash Money Life
• 30s:
  • The Chaotic Thirties @ Moolanomy
  • Personal Finance Advice for Your 30′s @ My Two Dollars
• 40s: The Forty Year Olds’ Wakeup Call @ Credit Withdrawal
• 50s:
  • You’re in Your 50s – Wake Up and Start Saving @ Millionaire Money Habits
  • Retirement Objectives in your 50′s @ Credit Withdrawal
• 60s+:
  • In your 60’s? Use your financial freedom wisely @ Rocket Finance
  • Easing into the Golden Years- the 60’s and Beyond @ Chance Favors
• Retirement:
  • 4% Withdrawal Rule for Retirement @ Four Pillars
  • Retirement in the UK @ Plonkee
• Highlights of all ages: My Dollar Plan

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© My Dollar Plan

I’d like to think that as the family financial guru, I give the best gifts! I put a lot of thought into each one and come up with gifts that will keep on giving, sometimes for the lifetime of the recipient. So why do people dread my great gift giving ideas?

My Gift Ideas

One of our younger family members just opened a Roth IRA. Her brother is going to open one too. My gift idea? Let’s put some money into their newly opened retirement accounts!

Our niece? We’ve already opened a 529 plan for her with the intent on depositing money each holiday.

For our kids? I wanted the grandparents to put more money into their 529 plan so they could take a bigger tax deduction.

My Rationale

All of the kids have toys already. When they get a new one they play with it for a little while and then move on. At first I tried to keep the toy store out of the house but it really is a tough battle to fight. Especially when you have the first two grandsons on both sides of the family.

Investing for the future is such a terrific idea. Investing early is always a key to success, or at least it has been for us. I keep thinking about 20-30 years down the road when they are all thanking Aunt Madison for setting up these accounts.

The Responses

Mr. Dupaix informed me that college kids don’t want deposits into their retirement accounts.

And while the college account is nice for our niece, we need to get her a toy too, because opening a certificate isn’t any fun on Christmas Day.

The grandparents want to do “the grandparent thing” and buy toys for the kids. Tons of them. I’m not alone; Paid Twice fights the presents versus college fund problem too.

Action Plan

I found that some battles just aren’t worth fighting. I bring this up every year in some form or another. Last year I tried to give stock certificates to family members before being vetoed. I’ll surrender and give clothes and toys, and let my kids receive toys.

I’ll still contribute quietly to each of their 529 plans but on Christmas morning I won’t be able to avoid calculating how much a $100 in toys would be in 63 years when my toddler hits retirement age. ($40,527 I mumble under my breath at 10% per year.)

And of course I’ll still brainstorm another way next Christmas to force financial freedom on my family. Maybe, just maybe, one of these years they’ll let me run wild with an idea.

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© My Dollar Plan