children's education

6 Ways to Save Money on Preschool Enrollment

Sarah Winfrey — Thu, 31 Jan 2013 10:48:35 +0000

If you have a preschool-aged child, you know that paying for preschool can be expensive. While there are a wide variety of prices and preschool philosophies out there, looking at the bill almost always feels like a shock to the system. There are, however, a few ways to save some money and still get your child the jump start on their education that you’ve been hoping for. (See also: 7 Important Lessons Frugal Parents Teach Their Children)

1. Shop Around

Look at more than one preschool before you sign up.

In our area, some preschools are five to six times more expensive than others. Are they better? That’s up to each parent to decide. The point is, you need to know what is available how schools differ from each other.

Remember that sometimes it’s worthwhile to spend more to send your child to a school that fits their personality. But if the schools are mostly the same, you don’t need to break the bank on the most expensive one. You won’t know which one that is, though, unless you look at several of them.

2. Talk to Parents

Other parents are your best resource for finding a good deal on a preschool. They’ve been where you are, and they may be able to tell you where you’ll get the best deal, where you’ll spend more but it will be worth every penny, or where your money will be wasted.

If you belong to any sort of parents’ group, ask everyone you can. Sure, some people will insist you go one place and others will send you another direction, but at least you’ll have more information. If you’re looking for something specific in a preschool, ask questions that will help you narrow your choices to those that will serve your child’s needs well.

3. Volunteer

Many preschools will allow you to volunteer and reduce your bill. While you’ll still have to pay (and sometimes the reduction isn’t very much), you’ll offset at least a bit of your child’s education. As an added bonus, you’ll get to be in and around the environment of the preschool, so you’ll have a better feel for what goes on there and what your child is learning.

4. Look for Aid

Some preschools offer financial aid. While these can be few and far between, it’s worth at least asking about, especially if you want to send your child somewhere you can’t afford.

You can also look into state and federal aid, although with the economy in its current state, these offers have gotten pretty sparse over the last few years. If you’re truly working on a low income, there should be some sort of free or subsidized preschool available for your child. If you make a bit more money, you may be out of luck.

5. Do It Yourself (or Join a Co-op)

If paying for preschool really grates on you or just isn’t in the budget, you can always choose to do it yourself.

There are a million different resources available online, from free, printable worksheets to entire curriculums. You’ll want to evaluate everything based on what you know about your child’s needs, strengths, and weaknesses, but most adults feel competent enough to teach things like shapes, sounds, colors, numbers, etc.

Some children don’t do well with preschool at home, either because they want to get out or because they don’t like to work with their parents that way. In that case, some areas have co-operative preschools. You’re still likely to pay a fee, but most of the classes are parent-led, and you’ll take your turn every so often. Or, you can get together with some parents of like-aged kids and make your own co-op.

6. Supplement With Freebies

Whether your child is in preschool or you’re doing it at home, take advantage of free options around your city. Many museums offer free days and, while it will be busy, it’s a great chance to expose your child to something they wouldn’t have seen otherwise.

While there are certain skills that kids need to learn before kindergarten, they’ll be in a better position to learn if they’ve used their brains in a lot of different ways. Giving them the opportunity to see many different things will help them develop the ability to learn. And there’s no need to pay for this exposure if you’re willing to do your homework and battle a few crowds.

There’s no need to feel overwhelmed at the cost of preschool. Instead, take your time, look at the options available to you, and then choose what’s best for your child and your budget. Give yourself as much time as you need to make the decision, so you can be sure it is one both you and your child will be happy with.

Were you able to save money on your child's preschool? Please share your experience in comments!

This article is from Sarah Winfrey of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Great Teachable Money Moments to Share With Your Kids

Annie Mueller — Wed, 14 Mar 2012 14:14:34 +0000

This post was underwritten by BMO Harris. Learn more from BMO Harris to help your kids understand the value of money.

Handling money is a skill, but it isn't a skill like talking or walking; your kids won't pick up good financial habits just because you have them. It's a skill that must be taught, and you're the best qualified to teach it to your children. After all, who could care more about their future, both financial and otherwise, than you do?

Look for these teachable moments in your life, and use them to pass on the financial insights you've gained over the years. As you share your own good money habits, you're helping your kids build a solid financial foundation for their own futures. (See also: 7 Important Lessons Frugal Parents Teach Their Children)

1. Use Coupons and/or Shop Sales

When your children get excited about some new product, article of clothing, or toy, get excited with them. Then tell them, “I'll be happy to keep my eye out for a coupon or a sale so we can consider buying that item.” Younger children will probably respond with something profound, like “Huh? What's a coupon?” Older children will probably respond with an eye-rolling extravaganza.

For Younger Kids

Coupons give you discounts, you can explain, so that you can save money for other purchases. Sales provide the same thing, just in a different way. That's really all you need to say, unless there are more questions. Then, if a coupon or sale comes along, let your child in on the excitement of the purchase. You've not only shared the concepts of discounts and saving money off the retail purchase price, but you've also helped your child build willpower for the most important financial habit — delayed gratification.

For Older Kids

Put older children and teens on the lookout for discounts and sales. Give them a top dollar, the highest amount you're willing to spend for the item. You can say something like, “I'm willing to spend X amount to buy this for you. You can either find it for that amount or less with coupons and sales, or you can make up the difference with your own money.”

2. Save Money Together

Saving money is a foundational financial habit, but one that can be hard for kids to understand. Even older children can struggle with the “far distant” goals of saving for college or a car, and younger kids don't really understand why all those coins keep going in the piggy bank instead of to the toy store. Fortunately, there are better ways to pass on the savings habit.

For Younger Kids

Find a big glass jar and put it in the kitchen or another prominent location in the house. Gather the kids together and let them know that this jar is for a special family treat. Have everyone gather all the spare change they can find in the house for a good start. Then keep collecting change until the jar is full, when you get to cash in and enjoy the benefits of all that saving.

For Older Kids

When it's time for a big purchase the whole family will use and enjoy (car, television), call a family meeting. Let the kids know the purchase you want to make, that you'll be saving X amount of money first, and whether that's for the entire purchase price or just a down payment. (You've also just introduced a great way to talk about down payments, interest rates, and credit in general.) When kids can see their parents saving for a big purchase instead of opting for instant gratification, it makes the concept of waiting and saving real and important. You can also invite them to contribute, so the purchase can be made sooner.

3. Purchase a Gift for Someone

For a very simple introductory lesson in setting and sticking to a budget, use the next birthday to appear on your calendar. A one-time, one-item purchase is a simple way to understand and apply budgets, which makes it easier for kids to understand and apply budgeting to bigger, ongoing expenses.

For Younger Children

Set a budget first and share with your child how much the budget is. Explain that a budget is the amount of money you have available to spend on the gift — it's okay to spend less, but you can't spend more. Then go shopping. When you spot something that might work, check the price first. Ask your child, is this more or less than we're able to spend today? Keep at it until you find something that fits both the recipient and the budget.

For Older Children

Send them out on their own (if appropriate) with the amount of money you're willing to spend and a few ideas for a gift. Have them include a cost for gift wrap in the budget. They'll need to deduct the amount from the total budget.

4. Plan a Vacation

Planning a vacation is a fun and more involved budgeting experience. Kids can't help but get excited about a vacation — new places! Out of school! Hotels! Camping! Eating out! What they easily miss is the cost of a vacation. Let your kids help you plan; they'll not only have the fun of anticipating, they'll also start to appreciate the monetary value of the experience.

For Younger Kids

It's often easier for kids to understand a budget when it's applied to a limited situation like a vacation. Sit down with them, your vacation brochures, and your budget. Explain options, such as, “This hotel is more expensive, but it has a bigger pool. We could have fun in the pool, but we could only afford to stay for three nights instead of four.” Let them share what their own priorities are (bigger pool, more activities, more eating out, more time?).

For Older Kids

Let them see your budget and the choices you have for spending money. Then ask them to make some of the plans. For example, spend more on eating at nicer restaurants, but skip that amusement park? Or pack picnic lunches and save enough money to stay an extra night?

5. Repurpose, Repair, and Reuse

Avoiding unnecessary waste is a thrifty habit, and an environmentally friendly one. Introduce your kids to the 3 R's of saving money on stuff: repurposing old items, repairing broken or worn items, and reusing by purchasing used (rather than new) items. These skills are a step up from using a coupon or shopping a sale, and they will make your kids more self-sufficient and financially savvy.

For Younger Kids

Make seasonal purchases from thrift stores, garage sales, or online classified ad sites such as Craigslist. Let your kids know what you're looking for. Explain that the reason you're purchasing used (ski coats, roller blades, whatever) is because you'll not only be saving money (by not paying the purchase price of a new item), but also because you'll be avoiding waste, which is really another way of saving money.

For Older Kids

Finding a way to repair broken items rather than toss them out and purchase replacements is both financially and environmentally smart. Give your older kids some lessons in basic fix-it skills, such as fixing a bicycle tire or sewing on a button or a patch. If you have the time and ability, help them develop more advanced skills as they are ready, from basic engine maintenance and repair to using shop tools or a sewing machine. Don't be overwhelmed; the idea isn't that you have to teach them all the repair skills they can know. You just want them to catch the concept of saving money by being able to learn and apply repair skills when needed.

6. Help Out the Less Fortunate

There's nothing like some perspective to help kids understand how much they have. Seeing how little other people have can help kids to appreciate and care for their own things. Finding those teachable moments together will not only instill gratitude, it will also help them build habits of being generous with their time and money.

For Younger Kids

Get your kids involved with a community project for the needy, whether it's helping gather Toys for Tots or collecting cans for a food drive. Doing this sort of volunteer work together can start all sorts of conversations — what does it mean to be poor? To be rich? To be jobless? To be homeless? Why does this happen? What's it like in other parts of the world?

For Older Kids

Volunteer as a family at a soup kitchen or homeless shelter, or take older kids on a mission trip to a third world country or nearby community in need of help. Don't miss the opportunities that come around unexpectedly, too, whether that's baking cookies for a sick neighbor or buying gas for a stranded stranger. It's easy to overlook teaching children how to be generous with their money, but don't make that mistake, even if giving means a sacrifice for the family. Learning that money is a tool to help other people is an important part of a complete financial education.

What kind of teachable moments do you share with your kids?

This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Get Into a Good School District for Less

Xin Lu — Fri, 24 Jun 2011 10:24:19 +0000

If you have children in public school, then you probably chose where you live based on the quality of the school district. Often the areas with the best school districts have the most expensive real estate prices. Here are some ways to get into the good school district without buying an extremely expensive house. (See also: Live Where It's Cheap)

Rent

Generally schools do not care if you are a renter or an owner. As long as you live in a school district, your children are eligible to attend. In many of the best school districts in the San Francisco Bay area, it is much cheaper to rent than own a house. It is possible to rent in a good school district for a while and then buy a house in a cheaper neighboring town. This is what my parents did, and the school district I was in allowed me to continue in the same school after we moved. My parents bought a house right on the boundary of the school district, so I was able to walk to school. Since the house wasn't located in the good school district, it was about $100,000 cheaper than the houses on the other side of the line.

Apply for an Out-of-District Permit

Most school districts in America have some slots for out-of-district students who want to enroll. However, these permits are often issued on a lottery system and enrollment in the school you desire isn't guaranteed. Usually the out-of-district students have to maintain a certain grade point average at the school accepting them. The requirements vary from district to district, so you should look up the rules in your area.

Pay Tuition

Some coveted public school districts actually allow out-of-district students to attend if they pay tuition. In most cases the tuition is less than what private schools charge and also less than what a family would pay if they had to pay for property tax on an average-priced house in the district. If this is an option near you, then you could consider living in a less expensive town and paying for the good public school out of pocket.

I'm not familiar with how public schools work in other countries, but here in America living in a good school district can really cost an arm and a leg. I completely understand why parents want to purchase a home in a good school district, but it is entirely possible to send your child to excellent schools while living in a cheaper town and saving hundreds of thousands in the process.

What do you think? Did you purchase your home based on the school district?

[Correction: Post was updated by Editor and some parts were removed.]

This article is from Xin Lu of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Five "Jobs" for Children

Xin Lu — Wed, 01 Jun 2011 10:24:13 +0000

I have decided that my child will not have an allowance when he grows older because I do not want my son to feel entitled to getting money for doing nothing. He will have to earn his money. Here is a list of "jobs" that I think kids can do to earn their spending money. (See also: Hey Kids! It's Time Your Butt Got a Job)

Couponing

If your children are old enough to read, then they are able to help with couponing. Kids can help identify and organize coupons, and then parents can reward them with a fraction of the money saved. If a kid really wants to buy something, then I think it is also his or her job to find a deal on the item.

Household Chores

When I was nine, my parents paid me for washing dishes. Other common household chores like throwing out the garbage, cleaning countertops, and folding the laundry can also become paid tasks for a child. I think a child probably shouldn't be paid for cleaning up his own room and toys, but extra work such as organizing the garage or cleaning the kitchen and toilets should be rewarded.

Extracurricular Academic Work

In fourth grade we were rewarded Pizza Hut coupons for reading books and writing book reports. If you think of school like a job for kids, then I think it is okay to pay kids for academic work beyond what is taught at school. One thing I plan to do is to let my son write essays about any topic he wants. If they are sensible pieces of writing, then I would pay him for his work. Of course, he will have to do all his regular schoolwork first.

Recycling

In middle school I collected cans and recycled them for a few dollars every month. I think children as young as eight or nine can do work like crushing cans and sorting cans and bottles. You may need to drive them to the recycling center to redeem the goods for cash. It is a good way for a child to cut down waste and earn some money. In states where you can redeem cans and bottles for cash redemption value (CRV), the money could add up quickly. In fact, a teenage girl we know asked friends, family, and neighbors to contribute to her recycling, and she was able to save up enough money for a trip to Africa.

Yard Sales

Every once in a while kids can go through what they have and see what they want to keep and what they want to get rid of, and then they can organize a yard sale. I did this once when I was young, and I made about $23 after putting up signs around the neighborhood and cleaning out my room. I sold some of my old books and toys that were taking up space anyway. My mom supervised me and chuckled at the paltry amount I earned, but all that stuff would have gone into the trash or to Goodwill anyway, so I really lost nothing.

I believe that making children earn their money will make them appreciate it more. If your kids are too young to get a real job, then these are real ideas for how they can earn money from you and others.

What do you think? Do you pay your kids an allowance unconditionally, or do they have to earn it? What do you pay them for?

This article is from Xin Lu of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Are Music Lessons Worth It? Hidden Benefits May Tip the Scale

Darwins Money — Wed, 25 May 2011 10:24:11 +0000

We have our 7-year-old enrolled in piano lessons. He's been at it for a little over a year now. There were various reasons for starting him off, but he's taken a liking to it, and I can envision him sticking with it for several years. Since his recital was this weekend, I was taking inventory of the costs and benefits of his lessons to date and thought it would make for a good discussion. (See also: The Vital Need for Music Education on Parenting Squad)

What Do Piano Lessons Cost?

We did really luck out with a great piano teacher around the corner who teaches for $25 per 30 minute lesson. Granted, at face value, that would equate to about $50/hour, which for a full-time worker is about a six figure salary. But the reality is, she only gives a few lessons at night since kids are in school all day, and she probably makes a few hundred bucks a month doing it. So she's not getting rich teaching piano, despite some common complaints (read The High Cost of Music for a contrary opinion). I've seen lessons for anywhere from $30-$50/lesson elsewhere, so I feel we're getting good value for our time and efforts.

Here's how the full cost of the lessons breaks down, including time and travel.

Lessons

At $25/lesson and about 40 weeks a year, we're talking $1,000 per year out-of-pocket for the lessons themselves.

Gas

It's a couple miles from our home, so I figure at 40 trips x $1 in gas round trip, that's $40 a year in gas.

Time Value

Then there's my time. It takes about 45 minutes a week round-trip, plus the time I spend practicing with our son. On one hand, one might try to equate this to time I could be earning money or something, but since this is during daylight hours and I do most of my freelance/blog work at night, it's really just time spent away from the other kids, so I can't assign a "cost" to that. I just make it up by doing other stuff with them.

Extras

Incidentals like additional music books, an annual recital, etc. probably add up to another $60/year.

Total Cost

So, the annual cost of piano lessons is about $1,100/year.

I don't know how many years he'll take lessons. Kids go through phases and come in and out of various interests. If I assume he plays through high school (highly unlikely), we're talking 10 years x $1,100 = $11,000 for 10 years of piano lessons.

What Benefits Are Derived From Piano Lessons?

While the much-maligned Tiger Mom proponents may seem over the top in banning their children from sports, social interactions, and "fun" to focus solely on schooling and hours of music practice per day, they may be on to something with the music benefits. This recent study lends further credence to the impact on the brain of those who play music. My son's already learning fractions, a new language (reading music is not intuitive and very different than reading a book), and discipline — how to practice, budget time, overcome stage fright, and more. These are all skills that he wouldn't be learning in front of the Wii, and to some degree, things he wouldn't be learning in school either.

I used to play guitar as a kid, and I definitely see the corollaries with math. As I was trying to nail 16th and 32nd notes to master a Metallica solo, I was training my brain to interpret and become comfortable with complex, fast calculations. I didn't have a particular affinity for math as a young child, but right around the 8th grade when I got into guitar, I started excelling at math in school and ultimately prospered through a Chemical Engineering degree in college. I'm not sure there's a causal relationship, and my case may be more anecdotal than anything, but in retrospect, I always had a sense that intense practice and musical performance "awakened" my math potential in some way. More recently, the study above demonstrated there's the science to prove it.

Can You Measure the Value of Music Lessons?

It's tough to put a financial value on such a quantitative topic. So are there any guarantees that my kids will do any better in school because they took piano lessons? Are they guaranteed to get into a better college or get a scholarship? Of course not. But for the equivalent of just a single year of private school that so many parents spend their money on, I can give each kid 10 years of music lessons. Aside from an appreciation for music later in life and being able to "relate" to other instruments and musicians, they'll be more well-rounded and, perhaps like our current piano teacher, they'll have an extra way to earn money on the side as an adult!

Do you think music lessons are worth it?

This article is from Darwins Money of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Are You Saving For Your Child's College Education?

Silicon Valley Blogger — Mon, 04 Jan 2010 17:00:09 +0000

Are you worried about savings account rates and whether your investments are keeping up with your financial expectations? That perhaps your money isn't stretching far enough to fund some of your future financial goals? Well you're not alone. There is one financial goal in particular, that looms heavily upon those of us with children: increasing costs tied to the call of higher education and college.

Lately, the issue of higher tuition rates has occupied the news; we heard of the disruption that took place at U.C. Berkeley when regents announced rising fees in the horizon. It can't be helped really -- it's one of those things that will hold true just like death and taxes do: rising college costs have always been a rite of passage for all of us -- parents and kids alike! (Check out our College Financial Aid How-to Guide for ideas on how to deal with the rising cost of higher education.)

But I'd like to bring up the notion that perhaps not all parents are intending to save for their children's education. No, they've decided not to set up that Coverdell ESA with an online stock broker or mutual fund company. There may be various reasons why this is the case and it's something I'd like to explore a little; I'd also like to determine how some well-meaning families are coping with the pressures of paying for college.

7 Reasons Why Parents May Decide Not To Save For College

I am making these points mainly to elicit discussion. But do you know anyone who has decided not to save for college? And if so, why don't they? I thought about it a bit and came up with a few possible reasons (or "excuses"):

1. You feel that you don't have enough resources.

A common reason for not saving for college is that you just don't have enough money to fund competing financial goals. The rule of thumb here is that you should first fund your retirement accounts before you contribute to your child's 529 college savings plan. The reason? It's more important to ensure that you take care of your own future to avoid having others worry about you in your old age. Your kids can qualify for financial aid, but it will be tough for you to handle any shortfalls in your retirement years if you don't have the means or the savings to live on. Now if financial resources are the issue for you, you may be assured by the knowledge that there are easier ways to get others involved with your savings goals: perhaps an avenue like a 529 account or a free savings account like SmartyPig that allows others to help contribute to your goals may be helpful. It's something worth checking out.

2. Some kids are independent and make their own decisions.

I believe that not everyone is necessarily cut out to go to college. It's also often the case that people in the cusp of adulthood will feel that they aren't ready to enter college at a certain point in their lives. Of course, they may always change their minds later, and that's something that they can decide for themselves. Now there are kids that only need a little motivation to be able to make it through school. If you're a parent, you'll know whether your child is the type whom you should trust with this important decision; and based on how you gauge your child, some of you may realize that your child may not require you to cover 100% of their educational needs.

3. Some parents expect their kids to pay their way.

Maybe it's a lesson in life that they'd like to impart to their kids, but many parents make the conscious decision to have their kids pay their way through school. In the past, by cobbling together various financing resources such as college scholarships, financial aid, work and student loans, a student can make their way through college on their own. But in recent years, with college costs much more expensive, leaving the financial burden for college solely on your child may no longer be a reasonable option. Perhaps your children's efforts would probably be better spent attaining a full-time college education and then paying you back once they get a secure full-time job in their chosen career.

4. Kids of veterans may receive reimbursements of educational costs.

Children of veterans are entitled to have 70 percent of their college education reimbursed. However, parents must still pay for the first semester of college in full. Once the child attains a grade of C or better in all subjects, a designated percentage of the tuition is reimbursed. Parents can roll these reimbursements into paying for the next semester but still need to come up with the remaining money for their kids' education. Again, 529 programs such as the one offered by the College Advantage Ohio 529 Savings Plan may help you build up some of the savings needed to support your child. Veteran parents can save more on their children's schooling by remaining apprised of the latest programs available to them.

5. Certain families don't see the value of higher education.

Unfortunately, not all people find value in going to college. Those folks who are particularly entrepreneurial by nature may think that their kids may be better off getting the experience from the school of hard knocks, say by working in the family business. They may value life experiences above those that can be obtained from a structured, academic environment. In this case, it's all about the family's values.

6. Some parents have lowered expectations.

If a child is not doing that well in primary school, his or her parents may end up having lower expectations of the child. Without noticing the potential, some parents may become discouraged about helping their kids pursue a higher education. It's sad, but could they be unwilling to take the risk of investing in their child's education? I believe that no matter what, we shouldn't give up on our kids as surprising transformations can happen in people.

7. There's the belief that what's good for the parent is also good for the chld.

There are some parents who didn't finish college or never attended college, and because of their own experiences, they may not feel compelled to have their kids acquire an education on their dime. But fortunately, there are many parents who don't think this way, despite the fact that they've never made it into the hallowed halls of academia. There are many parents who value college highly and look upon it as the holy grail for the next generation; therefore, they do what they can to encourage their children to get a degree. These are the stories that should inspire us to think about how we can push forward to better ourselves and the plight of the youths in our lives.

Having the opportunity to attend college is priceless and even when resources are low, there may be ways to save up for this important phase in your child's life. If there's a will, there's a way.

This article is from Silicon Valley Blogger of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: