Financial Advice Blog

It's never too early to start thinking about your children's college education. The sooner you start saving, the greater the chance your child will have enough money to get through college with no worries. But when considering college savings, many parents are unsure just what they should do with the money.

You could stuff it in a sock drawer, but it would have no chance of drawing interest there. A savings account might be slightly better, but any interest earned would be taxed. A 529 plan is a much better option.

529 plans are similar to 401K plans, but they're for higher education instead of college. Parents, grandparents or anyone else can put money into one for a specified beneficiary. Any interest earned is tax-deferred, and if the money is left in the account until the child goes to college and used for college expenses, there is no tax liability.

The country may be in a recession but there is an upside to it. Hotels and other resorts are slashing their rates by more than 50% during the peak and off season which means you can take a vacation. But to do that, you have to know the different ways to save money if you decide to travel.

First, plan your vacation way ahead of time and travel to places that are not frequented by tourists at that time. During the summer, head to winter resorts instead of the beaches. If it gets too cold, go to places that are warm like the tropics.

Before you buy your ticket and book your reservation, go online and compare the rates of the different travel organizations. You may find a 3 day 2 night package to a destination of your choice that is less than $500 per person. You just have to look carefully through each one by not only looking at the price but also what is included in the package.

Do you ever feel like the money you earn is just passing through on its way to someone else? A lot of us do. All too often we spend money as quickly as we get it. Some of that money goes toward necessities such as food and shelter, but a goodly portion of it often goes toward unnecessary items.

Whether you can't seem to save up any money for a rainy day or you're having trouble getting the bills paid, a household budget can help. Even if you don't seem to have any money problems, a budget can be of use. Carefully monitoring your spending allows you to save money for retirement, your kids' education, and any other goals you may have.

Creating a Budget

Setting up a budget is not as difficult as it sounds. All you have to do is list and prioritize. It may not be the world's most exciting activity, but it's quick and painless.

Saving for a family vacation during the year is possible, through some simple measures.

Most banks have a vacation and/or holiday club where you deposit a specific amount each week depending upon how much you wish to save.  For example, a Christmas club for $5.00 would yield $250.00, whereas a Holiday Club for $25.00 a week would amount to $1250.00 for the 50-week period.

In addition, you can automatically withdraw an amount from your paycheck and have it deposited to a savings account.

If you have a family budget, you may already be setting aside money for the family vacation.  But there are other ways you can save throughout the year.

Making dinner every night can be difficult, especially if both you and your partner work.  But there is a way you can save both time and money, and prepare delicious and healthy meals in the bargain.

Here is an example of how you can prepare a simple meal at home and save a fortune in the process.

First, check the Sunday papers to find out what’s on sale at the supermarket.  Clip coupons then go online and print out more coupons.  

The following Friday, after work, take a trip to the supermarket and buy only those items you need for the meals you are going to prepare for the following week.