• Save, save, save! All states have 529 plans that provide good options for parents and other family members to put away money to pay for college expenses. These plans aren’t risk-free, as most of them invest funds in stocks and bonds, but they do provide different options for managing risk and growing the funds. The money invested in most plans can be used for a variety of school-related expenses, but there is a penalty if the money is not used for education expenses.
• Choose a college wisely. For most career tracks, a lot of money can be saved by attending an in-state university. Or attend a less expensive college for a year or two and then transfer to that prestigious school.
• Use student loans carefully. Student loans can sometimes be tempting sources of money for items not essential to school. But they’re not always easy to pay off after graduation, so don’t borrow any more than what’s absolutely needed.
• Learn from student life. Coffee, pizza and other activities add up quickly. Students should spend three weeks tracking their expenses and develop a spending plan.
• Be careful with credit. A credit card wisely used can be a valuable tool to establish credit history. But never charge more than you can pay off next month.