grants

Everything New Parents Need to Know About College Savings

Tim Lemke — Tue, 26 Jun 2018 12:40:58 +0000

You've just ushered a new baby into the world, and are working to get your brain around all that you need to pay for. Diapers. Food. Child care. College.

College?

It may be nearly two decades away, but thinking about your child's college education now can help you save lots of money for when it's finally time to foot the higher education bill.

Saving for college will require a lot of discipline and patience, but you can make it happen with the right tools and knowledge. Let's take a look at some key things you need to know to send junior off to college without going broke.

Understand the cost of college

Let's start with an understanding that college is costly. The College Board says the budget for a moderately priced public college now is over $25,000 annually, and more than $50,000 for a private college. Prices have nearly doubled in the past decade and costs are expected to continue to rise. It's obviously impossible to know what college will cost in 18 years, but you can make reasonable projections based on current costs and the rate of inflation. Estimating the cost of college is obviously the one piece of information you need when determining how much to save.

Understand value vs. cost

You may have dreams of sending your child to whatever school they wish to attend, regardless of cost. That's fine, but you should also educate yourself on the schools with great reputations at a reasonable cost. The bottom line is that the most expensive schools aren't automatically the best. There are many ways for a student to get an excellent education without going into debt or wiping out your savings. (See also: Why Saving Too Much Money for a College Fund Is a Bad Idea)

Explore community colleges

Some people dismiss community college, but that's a mistake. Community colleges are perhaps the most underrated components of the academic system. There are thousands of these great colleges that offer solid education experiences for a fraction of the price of four-year institutions. They are excellent for students who aren't quite sure what they want to study or are perhaps wary of going away to school.

At community colleges, a student can often take care of many of the core requirements of a major, then transfer to a four-year institution where they can get the rest of the key coursework they need. This can ultimately save families tens of thousands of dollars. Consider community colleges when exploring future education options for your young one.

Open a 529 plan

Most states offer special savings plans that allow you to invest money for the purpose of saving for educational expenses. In most cases, you can withdraw the money tax-free when it's time to pay for college or qualified educational expenses. In a sense, they work like a Roth IRA, only for education.

Some plans also let you deduct contributions from your taxable income. These savings plans can be powerful because you can sign up for them as soon as your child is born. And if you save aggressively over the course of 18 years, you can end up with a sizable fund, perhaps even enough to cover the cost of tuition entirely.

If your child ends up getting a scholarship, you can use the funds for other educational expenses, such as a computer or other similar needs. If they don't attend college, funds can be used for vocational schools as well. You can also assign the benefits to someone else, such as a sibling or even a nephew, and there is no time limit on when you need to spend 529 funds, so you could even hold onto them and pay for your grandkids. (See also: The 9 Best State 529 College Savings Plans)

As a last resort, you can just keep the money for yourself — but you will have to pay taxes on gains as well as a 10 percent penalty. You won't pay the penalty if the beneficiary passes away, gets a scholarship, becomes disabled, or attends a U.S. Military Academy. If a child is disabled and can't attend college, it's also possible to roll 529 funds over to a 529 ABLE plan, which is designed to help disabled people with living expenses and other needs. (See also: Here's What You Need to Know About 529 ABLE Accounts)

Consider a prepaid tuition option

Depending on where you live, you may be able to take advantage of a type of 529 plan that allows you to lock in rates of college tuition now, potentially saving you tens of thousands of dollars. This can be especially powerful given that tuition continues to rise. Note that there may be some restrictions on what colleges the student can ultimately attend. (See also: Should You Save for College Using a 529 Prepaid Tuition Plan?)

Don't cheat your own retirement

You may wish to selflessly pump as much money as you can into your child's college savings account, choosing to worry about your retirement savings at a later time. But this is a dangerous strategy. If you choose to postpone retirement saving, you run the risk of not having enough saved to make ends meet when you stop working. And unlike college, you can't borrow money to pay for your retirement.

With smart planning and frugal living, you may be able to aggressively save for both college and retirement — but if you have to choose which to put money into, pick the retirement fund. If it helps, remind yourself that it's a way to ensure that your children don't have to help you financially in your later years. (See also: How to Keep Student Loans From Wrecking Your Retirement)

Let family members know how they can help

Your child's grandparents may be eager to help with future college costs, and you may have other relatives willing to pitch in as well. You can help guide them as to the smartest way to help.

In many cases, relatives may also receive immediate tax breaks by contributing to college savings plans, and they may even be able to gift money for college as a way to avoid future estate taxes.

Understand how financial aid works

It's important to learn how your income and savings can impact the type of financial assistance that your child may receive to pay for college. To qualify for grants or federal loans when it's time for your child to attend college, you will have to fill out a Free Application for Student Aid (FAFSA) form.

Not all families receive financial aid automatically. A student's eligibility is determined by a formula that takes into account the total cost of college and the expected family contribution, or EFC. The EFC is somewhat complicated, because it takes into account family income, assets, and household size, among other factors. (See also: The 10 Most Common Financial Aid Mistakes — And How To Avoid Them)

Learn about loans and their impact

It may be your plan to save for college and avoid loans entirely, but there's no guarantee you won't need them, especially if costs continue to rise. Navigating the ins and outs and pros and cons of both federal and private student loans will require some research and patience. You should seek to understand the typical interest rates on college loans, and how quickly loans must be paid back. Know that student loans can't be discharged in bankruptcy and that defaulting on loans can hurt a graduate's credit score.

It's also important to understand how student loan debt may impact a graduating student. Many recent graduates are struggling with student loan payments — the average 2017 graduate has more than $39,000 in debt — and that has an impact on everything from the jobs a graduate can afford to take, the city they can afford to live in, and the amount of other debt they end up accumulating. (See also: What to Do When You Can't Afford Your Child's College Education)

Live within your means

This may seem like such a basic piece of advice it's not worth mentioning, but it's crucial when you are trying to save for your own future as well as the college costs of a child. In an ideal world, you can save aggressively for both a child's college tuition and your own retirement, but that requires a hefty sum of cash. To achieve both goals, you must be laser-focused on keeping your spending levels low, avoiding debt, and managing budgets smartly. It may require sacrifices.

For many people, those sacrifices are worthwhile, but just be sure you know what they entail as you embark on this journey. Being prepared mentally and emotionally will help you stay on course.

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

How to Pay for College When You Didn't Get a Scholarship

Ashley Eneriz — Wed, 14 Mar 2018 09:31:15 +0000

Before I enrolled in college, I attended several seminars and read several books and articles on the magic of paying for your degree with scholarships. It seemed that there were so many success stories out there, and with around $46 billion of grant and scholarship money awarded each year in the U.S., I figured I could at least snag half off my college bill.

One year and over 100 applications later, I only won two local scholarships that totaled $2,500.

Sound familiar? If you feel like you can't win the scholarship game, don't despair. There are still other ways to afford your degree.

1. Ask your employer

Your place of employment could have more to offer than a paycheck. Many companies offer tuition reimbursement and employee scholarships, but sometimes you have to ask. If your company does not currently offer any tuition benefits, and you're preparing to apply for college, it may be time to switch jobs to an employer that does.

Once you graduate, also be sure to look for companies that offer tuition repayment as part of the benefits package. Many places, including UPS, Staples, and Aetna, offer this bonus to college students or grads. (See also: These 17 Companies Will Help You Repay Your Student Loan)

2. Don't forget about tax benefits

When it comes to tuition, every little bit helps. Tax credits shouldn't be overlooked. The American opportunity credit (AOC) offers student taxpayers or their parents a tax credit of up to $2,500 per tax year, for up to four years. Eligible students must be enrolled in a degree program or pursuing other credible secondary education. The AOC can either be claimed by a student, or a dependent student's parents — just not by both. And even better, the AOC was not affected by the new tax law.

3. Apply for financial aid

It is crucial to fill out the free application for federal student aid (FAFSA) each year, even if you think your parents make too much money. You never know what type of aid you will qualify for, and the application takes less than an hour to complete.

Also, submitting the FAFSA makes you eligible for federal student loans, which have more lenient payback options than private loans. (See also: 5 Reasons Why Every Student Should Fill Out the FAFSA)

4. Turn to your local community college

A community college can help you fill the requirements for many general education classes at a fraction of the cost of private or even in-state universities. As long as the credits are transferrable, a university will accept community college transcripts.

If you don't live near a community college, try taking online classes through one closest to you. Many times, you'll be able to complete the work of an online class flexibly, so you can turn in assignments late at night or early in the morning before physical classes are even in session. This could also give you more room in your schedule for a part-time job, which will help you stash even more dollars away for school. (See also: 6 Ways to Pay Less Money For A College Degree)

5. Don't use education loans or savings for anything else

Just because you have to take out a student loan doesn't mean the money should be used to float your every expense throughout your college career. Use the money only for tuition and other school necessities, like books and course materials. Live frugally for the rest of your needs and expenses. This may mean you don't get to experience dorm life to the fullest, or type your essays on a brand-new laptop, but it will be worth the sacrifice if it means taking out a smaller loan.

As a college student, I didn't have to take out student loans, but I also didn't have any money for anything else. I resorted to carpooling, living with my parents, eating homemade lunches, using the computer lab to type papers, working the 4 a.m. Starbucks shift, and borrowing textbooks from the library. It has been eight years since I graduated, and I don't regret going without because it means I don't have student loan debt. (See also: 8 Money-Saving Hacks Every College Student Should Try)

6. Research on-campus job opportunities

An on-campus job can help you pay for college and give you a few nice perks. For example, many schools offer residential advisers free room and board, as well as discounts on meal plans. Working on-campus means that you are able to squeeze work shifts in between classes, maximizing your time to the fullest.

I worked as a test proctor in college. My job was to sit in the room with nursing students and make sure no one cheated on their test. My advisers actually encouraged me to bring in my own course work and use the time to study while the test was going on. In a sense, I was paid to study, which I had to do anyway.

7. Pick the right student loan for you

Sometimes taking out a student loan to pay for college is unavoidable. If you have the choice, stick with federal to pay for your college degree rather than taking out private student loans. Many federal loans, like Direct Subsidized Loans, Direct Unsubsidized Loans, and the Federal Perkins loan, do not require you to start making loan payments until after graduation.

Also, federal student loan repayment comes with a fixed rate and there are several repayment plans available for those who cannot afford their payments. Private school loans are funded by private lenders, and borrowers do not have the same flexibility that federal borrowers have. (See also: 6 Questions to Ask Before Taking Out Student Loans)

There is no doubt about it; college is expensive. While winning several scholarships to pay for tuition is ideal, it is not a reality for everyone. Instead, wise financial decisions and the right student loan can help you afford your degree.

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

7 Ways Students Can Travel Abroad for Less

Amanda Gokee — Thu, 13 Apr 2017 08:30:15 +0000

The years you spend in college are arguably the only time you'll drink quite so much coffee, live with all of your best friends, and learn so much in such a short, intense period. They're also unique for most people in that you're given the flexibility to spend time traveling during long breaks from class or during a year spent studying abroad.

Unfortunately, it's not a time when you're likely to be earning a lot of income that you can throw toward travel. But there are several ways students can save money and travel for less.

1. Enjoy cheaper flights

Websites such as Student Universe and STA Travel offer special rates on flights for students and youth. Although booking through a third-party website always comes with caveats (changes and cancellations may be more difficult, for example, than if you book directly with the airline), it's worth checking these websites for deals.

StudentUniverse specializes in discounted fares for students at degree-granting universities, though it does also offer some flights for anyone between the ages of 18 and 25. It has been around since 2000 and works with 75 airlines to negotiate cheaper rates, passing on the discounts to customers.

STA offers discounted tickets for students, teachers, and anyone under 26, and has been in business since 1979. Student tickets are marked with a little blue circle with an "S" inside for "student." Youth tickets are marked in green with a "Y." (See also: 8 Money Moves Students Should Make for a Gap Year)

2. Always travel with your student ID

Be sure to bring along your student ID wherever you travel, since it can represent serious savings while you're away from home. You may already know that at some museums and historical sites, a student ID will get you reduced or even free admission. But some people are surprised to find that even movie theaters will sometimes also give a discounted price for showing a student ID.

If you have some shopping to do before you leave, or you need to pick up some new items during your trip, Madewell offers a 15 percent discount on in-store purchases for students and teachers. (See also: Best Credit Cards for Students)

3. Take advantage of other student cards

Beyond a student ID, there are other student discount cards that can help you to save money while traveling. The ISIC (International Student Identity Card) costs $25, but may be worth it, since it gives you access to more than 150,000 discounts on concerts, accommodations, museums, and restaurants.

The ISIC card has the added benefit of being an internationally recognized means of proving your status as a student, which is valuable in places where a foreign student ID may not be accepted. Plan to order your card at least four weeks before your departure so that it will have time to arrive in the mail. You may even find yourself using it for discounts while you're at home, too.

4. Incorporate travel with your studies

Travel can be a unique learning experience, so why not get credit for your time abroad? Some universities offer amazing opportunities to incorporate travel into your course of studies. Check with your department about what kinds of internships or summer experiences it may accept for credit.

Another option is to find classes that include travel. For instance, at my university, there were certain (highly coveted) classes that delved deeply into Italian art history. At the end of the term, the class took a two-week trip to see the artwork that they had been learning about all semester.

Depending on your university and the specific department, these trips may even receive funding from the university to defray the cost of the trip for students.

5. Leverage study-abroad programs

Studying abroad is another way to seamlessly incorporate extra traveling into your student life. Not only will you get to experience life in whatever country you choose, you'll also have the opportunity to travel to areas nearby. Having a home base abroad for a semester can be an excellent way to get to know a different region of the world and learn about a new culture and language. (See also: Budgeting for Study Abroad)

I studied abroad in the south of France, and during that time, I was able to travel extensively throughout Europe, visiting Prague, London, Budapest, and Istanbul, to name just a few destinations. While these trips would have been extremely expensive from the United States, since I was already in France, I could take advantage of cheap airfare on discount airlines like RyanAir and EasyJet. Plus, travel time was often only a few hours, so I could see these new cities over a long weekend.

I reduced the cost of these trips further by staying with friends or acquaintances who were studying abroad in other European cities. That not only saved me the price of a hotel, it also gave me more of an insider's perspective on these destinations. When I didn't have a friend living in the place I was visiting, I'd use Couchsurfing to find locals who would host me for free. (See also: 7 Ways to Make Money During a Semester Abroad)

6. Apply for grants

It's worthwhile to spend some time researching what grants are available through your school. Some top universities have travel funds for undergraduates to use for internships, research projects, or other programs abroad. You can apply for a grant to cover some or all of the costs of your travel and housing while you're away.

Some grants are offered directly through schools, but others are open to students across the country. Spend time preparing your proposal, since these grants can be competitive.

7. Travel offseason for better rates

Prices can vary a lot depending on whether you travel in peak season or not. Take advantage of the flexibility of being a student to book cheap flights at less popular times of the year. Being flexible with your travel dates can pay off, too. Use websites such as Skyscanner that allow you to filter your search by the cheapest date to fly. If you haven't decided on a destination yet, you can also search flexible departure and arrival airports. (See also: ITA Matrix Is the Best Kept Secret for Travelers)

When I was in college, I decided to take a semester off school to travel, and ended up being able to take advantage of an opportunity to travel to Chennai, India from Paris for just $200 — half the usual price. Once in India, I traveled for a month on only $200, so my cheap ticket was the equivalent of an extra month of travel.

While you might think that traveling is outside of a meager student budget, hopefully this list will show you some of the unique advantages that students have for traveling cheaply.

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

What to Do When You Can't Afford Your Child's College Education

Dan Rafter — Wed, 12 Apr 2017 09:00:10 +0000

First comes the joy: Your child receives the thick packet from a dream university, the sure sign of an acceptance.

But then comes the reality: that sky-high price tag.

The college your child has just been accepted to might be asking for $30,000, $40,000, $50,000 or more in tuition each year. And if your child doesn't receive much, or anything, in merit-based scholarships from that school, you and your child will be responsible for covering those costs — often in the form of student loans that can haunt your child's finances for decades after graduation. (See also: 5 Sobering Facts About Student Loan Debt)

What if you haven't saved nearly enough to help cover these costs? What if you haven't managed to save anything at all? What can parents do when they can't afford their child's college education?

The choice usually comes down to taking on tens of thousands of dollars in student loan debt or attending a less expensive alternative school. And if you can't afford the tuition at any school, there are still options in the form of scholarships, grants, and community college. (See also: 40+ College Resources for Parents and Students)

Rising costs

Tuition rates continue to rise every year. Especially at private universities, this means that tuition that is already intimidating becomes a bit more of a financial burden with each passing year.

In its 2016 report, the College Board said that the average annual sticker price — including tuition, fees, and room and board — stood at $20,090 for in-state students at public colleges, and $35,370 for out-of-state students. The average for private colleges was $45,370 in 2016.

There is a glimmer of good news here: Many students don't pay this full price. That's because many students receive scholarships (many offered automatically by the schools that accept them) and grants. According to the College Board's 2016 report, the net price of college — the price showing what students actually pay after they receive financial assistance — was $14,210 a year for tuition, fees, and room and board for in-state students at public colleges, and $26,080 for students at private colleges.

The fact still remains that after financial assistance, paying for college is no easy task, even at more affordable public universities.

Student loan burden

Student loan debt is a financial burden for many college graduates. According to Student Loan Hero, the average college graduate from the class of 2016 has $37,172 in student loan debt, a record high. But for many students, there is no other way to pay for college.

If you can't afford to help pay for your child's college education, student loans are an alternative. The loans, though, are far from a perfect solution. First, students can only borrow from $5,500 to $12,500 in federal subsidized and unsubsidized loans. Federal student loans are the best option because they come with the lowest interest rates and most favorable repayment terms.

Students who must borrow more each year will have to take out private loans. Their parents can also take out private student loans for their children. Those often come with higher interest rates and less favorable terms.

Relying completely on student loans could also set you or your children up for a tough financial future after they graduate, especially if they struggle to land a decent paying job. (See also: 8 Surprising Ways to Pay Off Your Student Loans)

A more affordable school

Your child might dream of attending that elite private school, but an in-state public university might be a more affordable choice that can provide your child with an equally strong education.

Explain to your children that an out-of-state private school might be a dream destination, but might also negatively affect their financial health for decades after graduation.

Students might also attend an in-state public school for two years, taking the general education classes that they are required to complete. They can then apply again to their dream university for the final two years of their undergraduate career. This can make their entire college career more affordable.

There's also community college. Community colleges are a far more affordable alternative to both private and public four-year colleges. Attending a community college for at least two years could leave graduates with far less student loan debt after graduation.

Sources of additional help

Many colleges automatically provide merit scholarships to incoming students, which students never have to repay. Colleges will automatically provide this financial assistance to the students they accept; students don't have to do anything to apply.

Merit scholarships can make private universities far more affordable. Private schools generally pass out more of this aid to attract students who otherwise wouldn't be able to afford tuition at these schools.

If your child is accepted at a school but doesn't receive any or enough merit aid directly from the university, you can always contact the institution's office of admissions or financial aid. Often, schools will allow you to fill out a hardship form as a way to request additional financial support. Colleges aren't required, of course, to provide more aid, but some might. A phone call could make a difference.

Also search for scholarships. Your child might qualify for hundreds of scholarships, some offering significant financial help. Winning these scholarships isn't always easy, with many attracting thousands of applicants. But even earning one or two scholarships can help cut down the expense of a college education. (See also: Where to Find Scholarships)

Your children can also work on a part-time basis to help afford tuition. Colleges usually offer their own work-study programs that can help defray expenses. Students who volunteer to serve as residential advisers at campus dorms might receive free or discounted room and board.

You might even be able to significantly reduce your child's yearly college costs by convincing your child to attend a school close enough to home so that your student can continue living with you. Room and board generally costs about $10,000 a year; if your child lives at home, he or she can eliminate this cost.

College education remains an expensive proposition. But you and your child do have options, if you look for them.

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

5 Ways to Make Adoption Affordable

Shannah Game — Thu, 02 Jul 2015 17:00:24 +0000

In a perfect world, you would meet the love of you life, get married, have a couple of kids, and embark on a booming career that afforded you many great luxuries in life. Unfortunately, the fairy tale doesn't always work out that way.

Many couples are faced with the reality that they are unable to have to kids for one reason or another. Not only that, the cost of adoption has skyrocketed, with many adoptions topping $40,00 in costs. When was the last time you had an extra $40,000 lying around?

There's no reason to go broke when you adopt. Here are five ways to afford adoption so you can get your family started right now.

1. Grants

Adoption grants are generally based on some sort of financial need, but for those that qualify, they can provide some much needed cash. A grant is a fantastic way to fund your adoption because they don't have to be paid back…ever. Some organizations are very specific about the qualifications for grants, while others remain more open. No matter what your situation is, there is an adoption grant waiting for you.

Adoption grants require you to be working with a licensed agency and have a home study completed before you apply for the grant. The average cost of a home study is around $2,500, and you can use this home study for grants and loans as needed.

There are hundreds of organizations that offer grants, and a good place to start your search is on Fund Your Adoption. Lori and Jeremy started Fund Your Adoption in 2012 after being swamped with details of trying to find ways to afford adoption. Fund Your Adoption offers a ton of great tips and resources for families who can't quite manage the expense adoption, and loads of wisdom through their experience.

Here are a few of the most popular grant organizations:

Help Us Adopt — this organization offers adoption grants for everyone, married or single, and regardless of religion.
Gift of Adoption Fund — this organization offers grants ranging from $2K–$5K and accepts all individuals.
Show Hope — this organization awards grants averaging $5K.
A Child Waits Foundation — this organization awards grants ranging from $1K–$5K and offers grants for everyone.

2. Crowdfunding

Crowdfunding is no longer reserved for Kickstarter type projects funding the latest and greatest gizmo. It has now become a popular tool to raise money to adopt children, too. All you need is a great network of friends and family (or other potential donors), and a compelling story.

Companies like Pure Charity offer an easy-to-use platform to raise an unlimited amount of funds online. Pure Charity takes 5% of your fundraising to pay for fees and administration costs. In exchange, they offer a site with tools like videos and how-tos, and any funds raised can go directly to an adoption agency that you name. This ensures that the funds raised might also qualify to be tax-deductible to the donor. (Make sure you check with your CPA before you set up your campaign to qualify for tax-deductibility.)

Your crowdfunding page is sure to make for an awesome show-and-tell story for your adopted child.

3. Tax Credits

Most people adopting don't realize that they will qualify to receive a tax credit. In 2015, you can claim up to $13,400 in adoption tax credits for qualified adoption expenses. Expenses include a long list of costs, but cover things like adoption and court fees, as well as travel expenses. The tax credit works for all types of adoption, including international, domestic, and foster-to-adopt programs.

If you are adopting Internationally, you will usually need to spend a few weeks in country before you are allowed to take your child home with you. The tax credit could certainly help make a dent in those expensive costs. You will want to make sure you keep very good records, receipts, and details of any costs that you expect to use towards the tax credit. You can hand all those documents over to your CPA at tax time to make sure you are applying the right costs.

One word of caution: the adoption tax credit is a heavily audited item on tax returns. Many people have abused this tax credit and falsified information. The best advice is to use a CPA or accountant the year that you file for the tax credit in case you are audited.

4. Loans

If you are unable to secure grant money, or just need to fill a gap in funds for adoption, loans can be the answer. You'll probably want to exhaust grants and any crowdfunding ideas before you explore loans, unless the idea of putting your adoption story online sounds like such a terrifying proposition that you'd prefer to assume debt, instead.

There are two types of loans — interest-free and low interest. As with any loan, you need to make sure that you can afford the monthly payments once the loan is in the repayment mode.

Interest-free loans are always the preferred method of funding, and there are a couple of great options. ABBA Fund offers loans ranging from $6,000–$8,000 for Christian families, while the Hebrew Free Loan Association offers loans up to $15,000 for Jewish families.

If you can't get an interest-free loan, low interest loans will be your next stop. One of the most competitive interest rates is with A Child Waits, which offers up to $10,000 in funding and charges 5% interest. You have a five-year repayment window, but no penalty for prepayment of the loan. That is still lower interest than most credit cards would offer, but certainly higher than some other options you might have available.

5. Fundraising

If all else fails, good ol' fundraising might do the trick. There are stories after stories of couples that raised enough money for adoption just through fundraising events alone.

Some of the more popular are car washes, dinners, auctions, and T-shirt selling campaigns. Credit card rewards points are also a great way to fund adoption. If you configure your spending properly, you could earn a significant amount each year in rewards points that can be traded in for cash and used towards expenses.

These are a few of the most popular ways to afford adoption, but certainly not the only ones.

What are some of the ways you've used to save money adopting?

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

7 Great Sources of Financial Aid for Switching Careers

Christa Avampato — Fri, 08 May 2015 13:00:08 +0000

With ever-growing competition in the job market, it's imperative to improve and develop our professional skill sets. Although higher education and career training can be an expensive investment, there are many sources of financial aid in the form of adult career scholarships, fellowships, and grants. Consider these seven.

1. Government Opportunities

Federal, state, and local governments often have money set aside to award grants and scholarships for adult learning. These opportunities are not very well advertised, but they are easily found if you know where to look. The best source of information on these is your State Education Bureau and the Federal Student Financial Aid Center.

2. Scholarships for Women

Scholarships for Women is an excellent site that lists little-known financial aid opportunities for women. Many of them are expressly dedicated to specific demographics, including race, religion, family structure, field of study, sexual orientation, and education level.

3. Scholarships for Working Parents and Those Who Want to Work Abroad

If you are returning to college to finish a degree or start a new one as an adult student, Scholarships.com has a number of links for adult learners. Some are specialized for working parents who are returning to the workforce after some time away. If you're adventurous and looking to have a second act abroad, the Peace Corps has a special initiative to entice experienced professionals 50 years of age and older to join its ranks.

4. Vocational Training

There have been a number of recent news stories about the lack of well-trained tradespeople, since these jobs remain very much in demand. If trade school interests you, there's money available to help you make that career transition. Check out the link for trade school scholarships at CollegeScholarships.org.

5. Financial Aid for Senior Citizens

You're never too old to learn, and many senior citizens are returning to school as a professional second act, or to pursue a long-held educational dream. Many schools (especially state schools) offer scholarships and grants specifically for senior citizens. Contact a college near you to learn about specific financial programs for seniors.

6. Career-Specific Opportunities

If you know exactly what field you want to study and need the funding to make it possible, ScholarshipExperts gives you a way to search by topic of study. And the topics vary widely — from the liberal arts to science to business to trade school.

7. Culinary School

In recent years, our national palate has gotten more sophisticated thanks to the craft food and beverage movement, as well as the popularity of media properties like the Food Network. More people than ever are pursuing further culinary training, and happily, there are a number of educational funding opportunities available. The James Beard Foundation and cooking schools such as Le Cordon Bleu offer financial aid in the form of scholarships and grants.

Are you considering returning to school or switching careers? How will you pay for it?

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

4 Ways to Inject Cash into Your Business

Jacob Harper — Sat, 10 Dec 2011 23:39:21 +0000

Link:

http://www.openforum.com/articles/4-ways-to-inject-cash-into-your-business

If you are a business owner you could probably use a bigger number on the positive side of your cash flow. Of course, the grand question is how best to accomplish that. You might think the answer to "How do I get more money for my business?" is "sell more of the goods and services my company provides," and you'd be right. But employing the economic skills honed at the lemonade stand isn’t the only way to succeed in business.

There are other strategies for injecting cash into your business that don't involve praying for an uptick in sales to flood your coffers. You probably offer important things you hadn’t thought of before that might be of keen interest to a buyer. And no, not your kidneys. We mean exploring options that you may not have considered previously.

1. Learn Your Grants

You’ve undoubtedly heard all the ballyhoo about stimulus packages and other nice, shiny presents for the “job creators.” Well guess what, Mr. and Mrs. Q. Business Owner: you are one of those fabled job creators. The grants are there, and the federal government is just dying to give you one! Well, “dying” is a strong word. Let’s just say “possibly willing to consider doing so after you fill out the paperwork.”

A grant is a gift to you for moving your business into the future, as a job creator in a desired area, or maybe even as a business that employs cutting-edge energy saving measures. Just check it out—maybe your business qualifies for one of these gifts from one of the 26 federal agencies that provide grants. What’s to lose in finding out?

2. Sell Your Debt

Banks love buying debt. Even today. Even after banks buying debt is what got the banks and the rest of us into the current, ongoing, global, catastrophic economic meltdown. But while banks have (mostly) quit absorbing the toxic loans that first sickened them, banks simply need loans to survive, especially good loans. And your loan—the loan made to a small business with good credit—might look mighty tasty to them.

If you show a history of having enough money coming in to pay off your loan in a timely manner (banks have learned their lesson on that one!), you might qualify for a new loan that pays off your current small-business loan at a lower rate. Of course, shopping around for a new loan is not guarantee of a better deal, but, as with grants, the effort could be more than worth the cost of your time to investigate.

3. Talk to the City, Talk to the County, Talk to the State

The local government in which your business operates has an interest in seeing your business succeed and subsequently create more jobs. Thus, there is a chance that the community, the county, or the state would be willing to give you an ultra low-interest loan to establish, expand, or simply keep your business afloat. Or maybe the local authorities are offering tax incentives to encourage you.

There are many possibilities— tax breaks for locating in gentrifying neighborhoods, resources for getting your store used as a film location, among others. Visit the websites of your various local government entities, call up the civic chain, and find out what’s available.

4. Move the Dead Weight!

"Dead weight" here does not mean the employees who are actively dragging your business under, although, by all means, get rid of them, too. Dead weight means any and all inventory and equipment that is taking up space rather than producing income. If you need cash, move the stuff that’s slowing you down.

One truth for everybody—individuals and businesses alike—is the longer they stick around in one place, the more stuff they acquire. But you can break this habit of accumulation if you just remember that everything you have is wanted by someone. No business should go under when they still have stuff, even if it appears outwardly useless. Someone, somewhere will take it and pay you for the privilege. I have yet to find a single thing that cannot be sold via Craigslist.

Move that dead weight, upgrade your business with the cash you realize, and move forward, footloose and fancy free.

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

The Truth About Business Grants

Kate Lister — Fri, 12 Mar 2010 22:44:58 +0000

Link:

http://www.openforum.com/idea-hub/topics/money/article/the-truth-about-business-...

It seems that anyone with a pulse has seen the zealot in the money suit bellowing from the White House lawn: "free money...yours for the asking." Even as I write this, the images fill my head like a bad sinus infection. The fact that the instigator can afford television advertising tells you something about how many people are willing to pay to be disappointed.

So, what's the truth about business grants?

The good news: They're real and thanks to the new open government policies, they're not too hard to find.

The bad news: Lots of people are after them and the application process is almost as irritating as the guy in the money suit.

Here are the basics.

The majority of grants available to private businesses are funded by government entities; after all, they're the ones with access to the press that prints the money. Generally, for-profit businesses are not eligible for grants from charities, corporations, and foundations, but if your project pertains to the arts, education, science, or a similarly targeted cause, you may be the exception.

Even with government grants, there's no free lunch. They're not actually giving away money. They expect something of value for it such as research, job creation, work performed, etc. In fact, many grant programs require "matching funds" — money from your organization or other sources that leverage their own.

A quick search for opportunities open to small businesses (companies with less than 500 employees) on Grants.gov turned up 587 open offers. Within that universe, the Small Business Innovation Grant (SBIR) program has the deepest pockets. Here are a few examples of projects they were recently interested in funding:

Probes for micro imaging the nervous systems
Inertially stabilized camera
Next generation helmet system
Longitudinal surveys of the elderly

So, what's the chance of finding a grant to expand your retail store? On one hand, slim. On the other hand, if the business is located in a blighted area, you're a disabled veteran, and you offer free computer time for disadvantaged youths — you might just have a chance. Likewise, if your expansion involves hiring the disadvantaged, job training, job creation, energy conservation, pollution reduction, or a myriad of projects Uncle Sam has targeted as part of the massive American Recovery and Reinvestment Act (ARRA) program, you may just be eligible for your slice of the American pie.

If you don't mind lots of paperwork, frequent disappointment, and many strings attached, here's a quick guide to the slow process of finding grant money for your business:

1. If you qualify for any special small business designation — such as minority-owned business, disadvantaged business, woman-owned business, or veteran-owned business — start the certification process. In some cases, it will give you preference over non-certified businesses.

2. Complete the Central Contractor Registration (CCR) application at Grants.gov. Before you begin you'll need:

a Tax ID (TIN) or Employer ID (EIN) from the IRS (this can take a couple of weeks);
a DUNS number from Dun & Bradstreet; and
the NAICS industry codes that describe what you do (you can look them Census.gov).

Once your CCR is approved (typically about a week), establish a login, complete your profile, and register for email or RSS alerts on grants that match your interests.

3. Read up on grant proposal writing. A number of government web sites offer guidelines, checklists, and even sample proposals; among them Grants.gov, CFDA.gov (Catalog of Federal Domestic Assistance), and Department of Defense.

4. Take advantage of the Freedom of Information Act to access successful grant proposals.

5. Look beyond the obvious. I received an email a couple of months ago that said: The State of Utah, UT is inviting you to participate in Bid #NO10008 - Public Education Campaign for Novel H1N1 Influenza . . .

From the downloadable packet, I learned that the State of Utah had received a federal grant to help educate the public about Swine Flu. They were requesting bids from companies that could create a media campaign to fulfill the grant obligation. So, while private companies were not eligible for the grant, they could still benefit.

With a bit of digging on grants.gov I learned the source of the federal funding was Opportunity #: CDC-RFA-TP09-902-H1N109 issued by the Center for Disease Control (CDC).

If I owned an advertising firm, I'd figure out who, in my State Department of Health, handles H1N1 issues by Googling: H1N1 and my the name of my State. I'd call or email telling them about my company's qualifications, and ask if they were accepting proposals. If they were, a careful read of their Request For Proposals (RFP) would help me craft my pitch.

6. Think "common good" — if you have a project that serves the needs of the nation (i.e. job training, back to work, employing the disadvantaged, reducing healthcare costs, curbing pollution, increasing safety, etc.) there's probably government money to fund it. Put your fingers to work Googling relevant phrases such as workforce training grants, disabilities grants, pollution grants, etc. Since many of the federally funded programs are administered locally, add your state or city to the search terms. Or visit your state and local government web sites and do a search on "grants." Be sure to sign up for their RSS feed while you're there.

7. If you find a grant that's closed to private businesses, find a non-profit that might want to collaborate on the project and share in the proceeds.

8. While Grants.gov does a good job of cataloging federal grant opportunities, also add yourself to the mailing list or RSS feed for any agencies that are particularly relevant to your business. Links to the primary federal grantors is available at FindingMoneyAdvice.com. For non-government grants, the FoundationCenter.org offers a subscription-based online tool that allows you to search for grants based by type, location, keywords, recipient, and a number of other parameters.

9. Be in it for the long haul. Most grant solicitations are issued at specific times of year. Often, the deadline for proposals is very tight. Plan ahead so you don't arrive at the party just as the dishes are being scraped.

10. Watch for scams. Where there is opportunity, there are opportunists. Don't pay for information that's available free and don't fall for one of the grant-mill pitches: "We'll send your proposal to thousands of sources of free money..." Likewise, while there are legitimate grant consultants, don't pay someone who's going to borrow your watch and tell you what time it is. Be sure whomever you hire has successfully obtained similar grants in the past.

11. Dot your i's cross t's. Applying for grant money is an exercise in precision. One misstep and you'll be out of the running.

If reading this leaves your temples throbbing, you already have a good feel for the business of grants. But if you have a unique solution to the world's problems or a special technical capability, take two aspirin and go for it.

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