Many parents and students see college as the bridge between this life and a better one. While more and more kids are heading off to college, many are struggling with how they’re going to pay for it. While a recent study conducted by Fidelity Investments in California indicates that more parents have started some type of a college savings or investment account, many have experienced a decline in the value of the account because of the declining economy. The results reveal that this loss is in the neighborhood of 27%.

Many parents are wondering what types of accounts are available to save for college and which one may the best one for them. Some financial and college aid experts chimed in on a few of the popular ways that parents have paid for or plan to pay for college—even in a faltering economy.

Types of Savings

529 Plans. Many parents have invested in the 529 plan, which is an account specifically earmarked for paying for college. Many parents and grandparents have come to depend on these accounts to cover college expenses because withdrawals made from 529 accounts to pay for college expenses happen tax-free.

There are two types of 529 plans, prep-paid and savings. Thirteen states offer pre-paid tuition 529 plans. Most states, however, offer a savings 529 plan, which is similar to investing in an investment portfolio, so there can be a fluctuation in the account value.

Financial experts seem to have opposing feelings about these types of accounts. Gene H. Harrison, VP and Director of Financial Planning for D.A. Davidson & Co. says, “Most 529 plans offer a variety of age-based options that provide for a shift in the asset allocation from more aggressive to more conservative as the child nears college age. In other words, if you used one of the age-based approaches offered and your child was within a couple of years of entering college, the account should theoretically be in a conservative asset allocation.”

Stan Ezekiel of College Planning Group Inc. has a slightly different view, “Unfortunately, the only benefit of a 529 plan is that the gain is not taxable if it is used for qualified higher education expenses. If a family has an opportunity to put money away on a monthly basis, they would be better served investing in a whole life insurance policy.”

UGMA/UTMA accounts. Michael Lopata of College Plan 101 suggests UGMA/UTMA accounts, which are another popular type of account with parents and grandparents. The UGMA/UTMA college savings options can also provide tax-free savings without the higher expenses associated with maintaining a 529 plan.

Account holders have a significant amount of control over the types of investments made during the savings phase and on how the distributions are made. It’s one more financial management tool for earning tax-free income. There is also some flexibility built into these accounts because the money doesn’t have to be used for college expenses, so if your child decides not to go to college, your savings can be applied elsewhere.

Real estate. Real estate investments, especially as a long-term investment strategy, are another way parents have invested money and turned it into a college savings account. Take, for example, a small business owner in Florida bought an investment home for each of his three children when they were first born.

He rented out the single-family homes over the 17 to 18 years of each child’s life. The rental amounts typically more than covered the home’s expenses, so not only did he enjoy the increasing value of the properties over the years, but he was also able to turn a profit from the rent. A few years out from each child reaching college age, he sold the home and used the profit from the sale and the money he had saved over the years from the rent to pay for college tuition, room and board for the child.

If you have a young child, now may be the time to consider this type of investment. Real estate prices are affordable and expected to increase again over time. Now may be the time to buy a home or piece of real estate at a deep discount, rent it out and sell it later for more than you paid for it. With somewhat of an unstable real estate market, this is probably not the right investment for parents with older children that have less time before the kids reach college age.

Tough Times Mean Alternative Methods

In previous times, parents may have carried the burden of paying for college alone. In modern times, students expect to pay for at least some of their college education expenses—be it from a part-time job or using gift money saved over the years. This, however, may not be enough to make up the shortfall, and with some families worrying about how they’re going to pay for necessities, college savings is something they’ve had to push aside.

According to Upromise, more families do not have to sacrifice saving for college to pay the bills. By registering with Upromise.com, parents earn one to 25% in rewards when they shop online, dine out or buy groceries and gas. The rewards can be allocated to a 529 college savings plan. To date, Upromise has more than ten million members and has contributed more than $500 million in member rewards.

High school and college aged kids are also approaching paying for their college education with their eyes wide open. This means some kids are attending nearby community colleges or universities rather than going away to school. It’s saving parents on having to pay additional money for room and board and only requires covering tuition and book expenses.

Times have changed and money set aside for college may fluctuate. Recent economic hard times are not stopping parents and students from using old tried and true ways along with innovative ways to pay expenses and save money for future college expenses simultaneously.

No matter what type of investment or account you choose as your college savings account, there is some risk involved. The key is to create a plan and start saving for college as soon as possible. Second, find an account that matches the amount of risk you’re willing and able to make. Once you have a college savings plan in place, all that’s left to worry about is getting your child into and sending them off to the college of their dreams.

A 529 college savings plan is another way for U.S. families to prepare for the high costs of college. Named after section 529 of the Internal Revenue Code, this investment vehicle has some similarities with and differences from the Coverdell ESA.

A 529 plan is another tax-advantaged plan that is designed to give incentives for education planning. Like the ESA, there is one custodian and one beneficiary for each account. The beneficiary can be anybody, even yourself (yes, you can go back to school for that degree you’ve been thinking of AND take advantage of the 529 for yourself).

State 529 Plans

Each state manages their own 529 plan and usually offers incentives for its residents to utilize the in-state version. Some states offer state tax deductions for contributions to residents. If you feel the tax deduction is not as important as performance, you can do the research and pick a better program and invest in that plan.

There are two types of 529 plans: the prepaid tuition program and the savings program.

529 Prepaid Tuition

The pre-paid plan gives you the ability to purchase future tuition at today’s prices. It generally covers all state and community colleges and may encompass private schools as well. It is best to confirm if your state offers this program and what the rules and limitations are. In this program, all funds are pooled together and invested to cover the increase in tuition over time (or so they hope).

Many of these pre-paid plans require that the beneficiary be 15 years old or younger. The tuition can be purchased in a lump sum or paid through monthly installments. Be aware, having a pre-paid tuition plan does NOT guarantee that the student will be accepted to that school.

529 Savings Program

The savings plan works much like a 401k does, in that the custodian has the choice of choosing the different mutual funds offered in the plan to invest in. In most cases, the “age-based” portfolios are the most popular. There are generally some kind of maintenance fee associated with the plan, and if the plan is bought through a financial advisor, mutual fund-type commissions. Each state offers different options and must be researched before you make a decision.

529 Contributions

Currently the contribution limits follow the rules for gifting. $13,000 may be contributed per beneficiary per person. This means mom & dad can put $13,000 each in for little Johnny or Suzy. There is a 5-year “pay-forward” in which you can put up to five years worth in at one time. This works out well for estate purposes; Grandma & Grandpa can each contribute $65,000 and remove the funds from their estate for tax purposes.

There are no income or age limitations to the savings plan. Anybody can contribute and take advantage of the opportunity. Like ESAs, 529 plans are also not factored in when applying for financial aid.

529 Distributions

Like the ESA, qualified withdrawals are federally tax-exempt, and in most cases, state as well. Unlike the ESA, 529s can only be used for secondary education. These funds can be used at any accredited college or university in the US, and in some cases, abroad as well.

If the beneficiary does not go to college or receives a scholarship, there are options to do something with the funds. One alternative is that they can be transferred to another member of the beneficiary’s family. If the funds are withdrawn for an unqualified reason, the earnings (but not the original contribution) would be subject to both federal and state taxation as well as a 10% penalty.

College Savings Plan

It is estimated that for children born this year, the average cost of a four year college education will cost over $250,000. Sure, that number is intimidating but it will be less so if you start saving now, even if it’s only one dollar at a time.

Coverdell Education Savings Account History
Years ago, there used to be an account called the Education IRA. It was created by the government to help parents prepare for the costs of schooling for their children. This account was not that popular, because at the time, it had a $500 annual contribution limit. I remember clients telling me back then that the low limit “just wasn’t worth it.”

In 2002, like any smart company would do when their product isn’t getting used, Congress went back to the drawing board. It was re-branded as the Coverdell Education Savings Account or ESA (named after the main sponsor, Paul Coverdell, R-GA). The new & improved product took care of the biggest flaw by raising the annual contribution limit to $2,000.

Coverdell Account Contributions & Limits

That ESA limit is the same today, but it is subject to income thresholds.   The person funding the account (whether it is a parent, grandparent, uncle, etc.) must have an AGI below $95,000 if single and $190,000 for anybody filing a joint return. These limits are phased out for income between $95,000 – $110,000 and $190,000 – $220,000 respectively. One way you can avoid this issue is by gifting the money to the child so that they make the contribution it to the ESA.

Contributions can be made until the beneficiary reaches the age of 18. The account must be depleted by the time that person reaches the age of 30 to avoid tax penalties. The custodian for the account can also appoint another eligible beneficiary.

Coverdell Investing Options

Unlike a 529 plan where you are limited to the investments of the specific sponsored plan, ESAs have the ability to invest in stocks, bonds, mutual funds, etc. Like the 529 plan or any other custodial account, the custodian has the authority to run the account and make investment decisions. However, those decisions must be based on the minor’s situation. For example, a 17 year old high school senior should not have their account invested in aggressive stocks if the money is to be used the next year for college.

Coverdell Distributions

All withdrawals for “qualified expenses” are tax free. “Qualified” is a broad term in this case for the IRS. All room, board & tuition, books, etc. qualify for the tax-free treatment. However, if your child wants an apartment off campus, the rent for that apartment is NOT qualified. The biggest difference between the ESA and a 529 is that the ESA allows you to use the funds for primary and secondary school expenses. 529s only allow the use of the funds post-high school graduation.

College Planning

Keep in mind the money inside an ESA is not factored into financial aid analysis because technically the funds are not owned by the beneficiary. Hopefully this info on the ESA gave you some things to consider when you look into investing in your child’s future. Some people may choose an ESA over a 529, others may choose both. Either way, use something, it will certainly be in your and your child’s best interest to do so.

Emergency funds are for old married people, not recent college graduates, right? Just scraping by financially is an art form perfected by many college students. Creative ways to earn extra money in college and spend as little as possible helped you make it through school.

Now that you’re leaving college and looking for a job it’s time to start thinking more long term about your finances, if you haven’t already.  Once you get that first paycheck, you’ll have every urge to spend that money on a bunch of stuff that you don’t need. Resist the urge, and start saving some cash for an emergency fund.

How Much Should You Save?
$1,000 is a good start, but eventually you should try to save up about three to six months of your monthly expenses. That sounds like a lot of money, but your basic monthly expenses would only be calculated using your bills that provide your essential living expenses such as rent, utilities, food, and transportation.  You can even suggest contributions to your emergency fund as a college graduation gift.

What Should You Use Yor Emergency Fund For?
Defining an emergency is important for knowing when to use the money in your emergency fund. It’s not an emergency that you don’t have an LCD TV, and you want one. It’s not an emergency that you want to take a trip to see your old roommate. Some people go as far to say that unexpected car repairs and house maintenance repairs should be budgeted separately from your emergency fund, because it is reasonable to believe that you will need to make car and home repairs at some point.

I am not that hardcore, but my advice is to limit yourself from using the money unless you are in a dire situation. Losing your job and unexpected medical expenses are two major reasons for using your emergency fund. These two events can destroy your financial health, and the emergency fund acts as a safeguard to prop you up while you go through a difficult situation that limits your income.

What Could Happen If You Don’t Have an Emergency Fund?
Chances are you’ll end up relying on credit cards. Many young people are taught they should own a credit card for emergencies. If you make a habit of relying on credit cards to bail you out of a bad situation, you’ll rack up more credit card debt than you can imagine; this is exactly what happened to me while I was in college.

I put car repairs, books, health expenses, shortfalls in monthly income, and other expenses on a credit card, and I walked out of school with $8,000 in credit card debt. Don’t let this happen to you whether you are in college or just graduating. It will add up quickly, and you’ll spend too much of your hard-earned money paying credit card interest.

The importance of an emergency fund is not a news flash. Personal finance experts talk about them all the time, but still, many young people fail to save for one. Don’t get caught up in the frenzy that you “need” a new car, new furniture, and new clothes. You can get those things later. Save up some money right away to safeguard yourself from disaster.

Where Should You Keep Your Emergency Fund?
A free, online savings account is my preference for parking short-term savings cash. I like the ING Direct Orange Savings account. The interest rate has dropped considerably, but it has an easy to use interface, quick transfers, and the ability to set up sub-savings accounts. You can also open an ING online checking account with a debit card to make it convenient to access your money if an emergency arises.

Luckily, deciding where to keep your emergency fund is the easy part since there are many good FDIC insured alternatives.  Here are some of the best online savings accounts:

• FNBO Direct
• HSBC Advance
• WT Direct
• Etrade Bank

A review of the best credit cards for college students can have two very different outcomes depending on whether the student is responsible enough with money to pay off the bill when they sign up for a credit card.

Who Should Have a Student Card?
For students that will carry a balance, the best credit card is no card at all; too many students leave college with enormous debt due to an inability to pay off the things they charge on their cards.

On the other hand, if you’re good enough with money to only buy the necessary items and pay off your balance each month then a student credit card can be a good way to build your credit history.

Reasons Not to Open a Credit Card
Let’s start off by looking at the reasons why you shouldn’t apply for a student credit card. 

You shouldn’t open a line of credit if you’re doing so on a whim.  You’ve all probably seen booths on campus where you can get free food, T-shirts, or other items in exchange for filling out a credit card application.  Trust the thousands of students deep in debt across the country who would tell you emphatically that the free stuff isn’t worth the card.

Avoid a credit card if you don’t have a plan for how to use it or an income to pay it off.  This goes along with not opening a credit card on a whim; you should know what expenses you’ll put on the card and where the money will come from to pay off the balance each month.

If you’re an impulse shopper, don’t get a credit card. The temptation to buy something in the heat of the moment and figure out later how to pay for it will be too great.  Save yourself hassle and a lot of interest payments and don’t sign up for a student card.

Lastly, here’s a list of common credit card mistakes that college students should avoid.

Benefits of a Credit Card
When I was in college I used a credit card to pay for certain miscellaneous expenses.  I didn’t have a big bill every month so I made enough from my campus job to pay off the balance and after four years I had established a flawless credit history.

Build a Good Credit History
When I went to rent an apartment right out of school the building manager was very pleased when he ran my credit report and commented at how very few college grads have a positive credit history.  With more and more businesses using your credit report to gauge risk, having a positive history once you leave school can be very helpful.

Buying a House – For example, when my wife and I went to buy a house a few years out of school, I was eligible for a great interest rate based on my credit history.  My wife on the other hand never had a credit card or any type of loan payment so she had zero credit history. 

Putting her name on the loan would have required us to pay a higher rate on the money we were borrowing so we left her off entirely. She was kind of upset, she had avoided opening a credit card in college to be financially safe but down the road her lack of a credit report worked against her.

No Late Payments or Balances – A key point to remember here is that this approach only works if you make your payments on time each month and don’t leave school with a pile of credit card debt.  A history of missed payments or a big balance will hurt, rather than help, your credit score.

Choosing a Credit Card
The criteria for finding the right credit card for college students should be:

• No annual fee
• Low annual percentage rate (APR)
• Free online account access and management

The emphasis here is on keeping any fees to a minimum and making it easy to manage and pay your credit card bill.  Even though you don’t want to carry a balance, you should still look for the lowest APR in the event there’s a month where you’re charged interest. Most of the student cards offer an introductory period where you pay 0% interest but remember it’s only for a short time period, typically 3 – 6 months, and then the APR goes up.

One other thing to look for in a student credit card is a free rewards program.  If you’re not going to be putting a lot of expenses on your card then it’s not as important but if you plan on charging larger amounts then a rewards program can pay off.

Best Student Credit Cards

In terms of APR, the Citi Platinum Select Card for College Students has the lowest rate available today for students.  Since it has the best interest rate along with no annual fee and free online account management it would be a good choice.  The one thing it doesn’t offer is a rewards program, which leads us to the next student card.

The Discover Student Card doesn’t have the lowest interest rate but it does feature one of the better APRs for students and it comes with a free rewards program.  The rewards are higher (5%) for certain categories of purchases and 1% on everything else.  Unlike the Citi Platinum Select, the Discover Student card application doesn’t ask any income questions, just be sure you make enough to cover whatever you charge on the card.

Discover also offers the Discover Student Open Road Card No longer available which gives 5% back on the first $100 of combined gas and auto maintenance purchases each month.  One nice thing about the Discover rewards program is that your rewards are redeemable in $20 increments.  Meaning you don’t to wait until you’ve earned $50 in rewards like a lot of other credit cards.

Charge Wisely
If you’re smart about how you use credit in school you can graduate and enter the “real world” with a good credit history.  If it sounds like too much work to manage a credit card or too much temptation to overspend then you’re better off just paying by cash or check in your college years.

This review of the best student credit cards and how to build/protect your credit history in school is part of the College Student Money Guide.

For many of us college is our first experience with managing our finances completely on our own – and it can be difficult to keep everything straight. There are several cheap and easy ways to manage your money effectively without spending a lot of time on it. Here are some tools and tactics for managing your money while you are in college:

1) Carry cash for everyday purchases - It’s a lot harder to overdraw your checking account when you carry cash. As long as you have money in your wallet or purse, you still have money. When there is no more money in your wallet, then you are broke. When you run out of money then make a withdrawal from your bank in an amount that is easy to remember. Let’s say you take exactly $50 out each time. You will never have to wonder about much of anything. You will know how much is left in your account. If you burn through $50 in the first day or two, then you will know you need to change your spending patterns.

It’s a simple rule, but one that could save you hundreds of dollars in fees to your bank. After all, you are busy working, learning, studying, socializing and generally trying to move forward with your life. If you truly don’t have time to sit down and balance your checkbook each day, then carrying a set amount of cash will keep you from accidentally overdrawing your bank account.

2) Use your bank’s online service to keep track of your accounts - This is usually a free service that comes with your checking account. Make sure you check it every few days to make sure that your records and the bank’s records agree. Be aware that most banks run several days behind when they post your charges – so don’t be tempted to think that you have “extra money” in there somehow. It’s more likely your bank has not posted your last few transactions.

3) Invest in a cheap folder or grab an envelope and keep your receipts in it - This is a habit that will serve you well the rest of your life. It’s very, very common to blow your budget on the little items, not the big ones. Buying three sodas or coffees a day, eating lunch out, etc. can really add up. If you save your receipts then you can sit down at the end of the month and go through them. They will give you a very clear picture of where your money went that month. Reviewing those receipts will also help you to understand what your spending habits are, and teach you to change the expensive or unhealthy habits to better ones.

When you’re ready to move up….

Let’s say you’ve got the basics down, and you’d like to take a more hands-on approach to your money, possibly open up an investing account, keep track of your student loans, manage your credit cards, and make a detailed budget

There are all sorts of personal finance tools out there that can do the job, but many of them are expensive. In my opinion there are two programs out there that outshine the rest. If you put them both together, you have a powerful tool to help you not only manage your complete financial profile, but every detail of your schedule as well.

1) You Need A Budget: The YNAB software will allow you to spend less time managing your finances than ever before. There are three versions of the software that range from $11.95 to $39.99. (Compare that to the cost of a program like Quickbooks that starts at $100 for the basic package).

YNAB let’s you import your transactions directly into the software from you bank – you don’t have to spend time each week updating your financial software to match what your bank account already says. It allows you to make your own categories for things, track anything you want to, and even contains the tax forms you will need to fill out at the end of the year.

With YNAB you can track your spending and debt repayment over time, set goals, and do just about anything you can imagine to design your own budget. It is by far the cheapest, most sophisticated piece of financial software I have seen to date. And it will grow with you – once you are out of college you can use YNAB to keep track of your mortgage, car payments, even retirement accounts.

You can learn more about YNAB by clicking here.

2) BackpackIt - This is an online service that runs about $7 a month. It has a calendar feature that you can set up with the due dates for all of your bills and BackpackIt will email you a reminder the day before they are due (or any day you set it to remind you.) You can use it for your school projects and relatives birthday’s too.

A few additional features:

You can access BackpackIt from anywhere, and create individual private pages for anything you need. You can make pages for your school projects, your financial goals, or anything at all. You do not need to know html to do any of this, everything is drag and drop.

BackpackIt has a To-do list feature, and a “Make a Note” feature. You can also upload files, and email things to the program and they will appear on your pages.

BackpackIt has really become invaluable to me personally – I wish I had it in college. You can keep track of your entire life with it and it’s completely private and easy to use. If you’re curious about it, you can get a free trial of BackpackIt here.

If you were to combine YNAB and BackpackIt I honestly believe you would never need another piece of financial software ever again – they are that powerful a combination. Together they are tools to manage your finances, your projects and your life quickly and seamlessly.

Whether you choose to use either of these programs or not, be sure that you do set up a system for managing your money. As tough as things are to manage while you are in school, they actually get even harder once you’re finished. If you get your basics down now, and have software you can trust, then maybe you will never have to struggle with managing your finances – and that is priceless.

In this series you can also read about a review of student health insurance options and comparing them with eHealthInsurance.  Find the best spot to keep your hard earned money in our review of the best checking accounts for college students.  Check in tomorrow when we’ll discuss the best student credit cards.

This review of software for budgeting and money management for college students is part of the College Student Money Guide.

Young people love their gadgets. I love gadgets. The problem is that they come at a premium price, and I don’t like paying a lot of money for electronics. Parents only have so much money to buy gadgets for their kids, and college students never have any money. So, I put together a list of inexpensive gadgets for college students. The word “inexpensive” is relative, because you might not think some of these items are cheap, but they are cheap relative to their competition.

The Dell Inspiron 1420 – $749

I know that Mac Books are by far the most popular laptops among young people, but hear me out on this one. Here are some features of the Inspiron that make it worth getting while in school.

• Mac is better for images and video, but not for productivity. The Dell Pentium Core Duo processor is efficient and sips battery life.
• You can pick from a number of colors and it only weights 5.3 pounds
• At $749, it’s $300.00 less than the standard Mac Book.
• Comes with Core Duo processor, 2 GB of RAM, 250GB hard drive, wireless card, DVD writer, and built-in webcam

The Palm Centro – $99.99

The iPhone is the most popular smart phone on the market, but it’s expensive, and the plan is even more expensive. They lowered the price for the new 3G iPhone, but they increased the data plan by $10 and it doesn’t include a text messaging plan. So, if you want to save some coin, check out the functional Palm Centro.

• Full QWERTY keyboard, perfect for texting and sending email.
• Sync contacts and calendar from Microsoft Outlook.
• Touch Screen with a more slender design than the Blackberry.
• AT&T, Verizon, Sprint, and T-Mobile offer the Palm Centro at a nice price, $99.99.
• Google Maps uses triangulation to locate your approximate spot on the map, also has Telenav GPS system.
• Blazer web browser has mixed reviews, but serves its purpose.

;The Canon Pixma MX700 All-in-one – $129.99

I’ve never had a Canon printer, so if they are horrible, feel free to post a comment. I’ve heard good things about this one, and I am looking for a new all-in-one printer, so I might try this printer out. Here are the features:

• Copy, Fax, Scan, and Print. You’d be surprised at how many times you need to fax something while you’re in college.
• Costs only $129.99
• Great picture quality printing. You can hook up your digital camera straight to the printer and save money on photo developing with this printer.
• Makes copies up to 30 words per minute.
• 70% of consumers voted it a “5″ on Newegg.com

The 2nd Gen iPod Nano 4GB – $149.99

In my opinion, this is the best iPod for the value on the market. iPod got it right, other than the fact that it doesn’t have an FM tuner. I own this Nano, and it’s perfect for my needs. For a college student, it’s perfect for working out and going on road trips. The 8GB is $199.99 if you truly need that much space. I came to grips with myself that I didn’t need 60GB of music at all times, so I dumped my brick of an iPod and bought the new Nano. Apple will probably come out with a 3rd generation ipod soon, because they love rolling out new products as fast as people get accustomed to the previous one, but this nano should satisfy your gadget cravings for years to come.

The Nikon Coolpix L18 – $119.00

This is a simple little camerea, but great for taking out on campus, at the bar, or at sports events. If you’re a serious photographer, don’t bother with this camera, but it’s great for the average user at a discount price.

• $119.00 on Newegg.com
• 3″ LCD screen
• 8.0 mega pixels
• ISO 64 – 1600
• Compact, stylish design

Remember that I’m not presenting my picks for the BEST gadget of these five genres. I tried to find a decent gadget at a discount price, because at Money Smart Life we’re looking out for your bank account first. Buying a hunk of junk isn’t worth it if you get it at a discounted price either, but the research and reviews shows that these products will definitely satisfy for their price tag.

If you’re going to spend money on gadgets, you’ll have to save it somewhere else.  Learn about ideas for decorating your dorm room on a budget saving money with student discounts, and ways to have fun in college on a student budget.

In this series you can also read about a review of student health insurance options and comparing them with eHealthInsurance.  Finally, you can find the best spot to keep your hard earned money in our review of the best checking accounts for college students.

This college student guide to getting the most gadget for your money is part of the College Student Money Guide.

Comparing student health insurance rates is not top of the list for most college students when preparing to leave for school. Seeing as how nearly one third of all college age Americans are uninsured, it’s obvious that it can be hard for students to pay for books/tuition plus come up with some money for health insurance. However, finding an insurance plan with low payments that can at least offer you catastrophic coverage is a good idea. This article will take you step by step through the various health insurance options available to you, and help you find the one that’s most affordable and that best fits your needs.

1) See if you can get coverage under your parent’s health insurance plan. Many insurance policies will allow parents to pay for their children’s insurance until they are out of college. This would be the cheapest option since you can work out a payment arrangement with your parents, or possibly get it for free.

If you don’t have the luxury of staying on your parent’s health insurance policy, then don’t worry, you still have plenty of options.

2) Check to see if your university offers a low cost health insurance policy. Some colleges are actually starting to require you to have health insurance before you are allowed to attend. Most colleges do offer low cost health insurance plans to their students. Check with your guidance counselor or your student resource center to find out about the types of insurance coverage they offer, and how much it will cost you to participate.

3) Look for a part or full time job that offers health insurance benefits. Working and going to school full time is hard, but not impossible. More and more companies are beginning to offer health insurance benefits when you work at least 20 hours a week. Restaurants in particular are good about offering insurance to their employees who work less than 40 hours a week.

Here are some of the top companies that offer health insurance to part time workers:

• United Parcel Service – UPS not only offers insurance to part time workers, but they also help you pay for school. It’s hard work, but if you need the help it’s a win-win situation.




• Starbucks – If you work at least 20 hours a week with Starbucks then you can get medical, dental and vision coverage under their insurance plans.




• Costco – Working 20 hours a week at Costco will get you medical, dental, vision and prescription coverage. There is a 180 day wait period from the time you start working for them though, so if you need insurance right away this may not be the best option.




• Trader Joe’s – If you’re into organic food then Trader Joe’s is a great place to work. They offer benefits to part time employees and offer employee discounts that just might let you fit their natural, organic food into your shoestring budget.




• Home Depot – They offer medical and dental benefits to part time workers, and tuition reimbursement to full time employees.




• Staples – Working 20 hours a week at Staples gets you access to their insurance program. They even offer life insurance, and a pre-tax flexible spending account with a company match policy. Staples also has a yearly scholarship program for it’s employees that helps cover the cost of your tuition.




• McDonalds – Flipping burgers might not be an ideal job, but it pays the bills! It could also net you Health insurance, dental insurance, vision insurance and a stock option plan. They also offer college tuition assistance. Some McDonald’s are independently owned though, so if you want the benefits you will need to look for a corporate run store and not an independently owned chain.




• Circuit City – Part time employees at Circuit City are eligible for health, dental and vision insurance. They also provide tuition assistance to help you pay for your college courses.

4) Consider purchasing your own insurance plan – This can be costly, but there are a few programs out there designed specifically to offer health insurance to college students. You can get health insurance through Humana for around $30 a month. Aetna, Anthem, and United Healthcare also offer individual health insurance policies for students. Depending on the insurance plan you choose you can expect to pay between $30 and $70 a month for your coverage.

You can use eHealthInsurace to get health insurance quotes and compare plans. You provide the zip code where you live and where you’ll attend school, when you need your coverage to start, your gender, and birth date and they’ll give you a list of student health insurance quotes from a wide variety of plans.

• Get Student Health Insurance Rates

These steps may seem like a lot to go through just to pay for health insurance, but it really is essential. Even though you are young, and healthy, well…nobody plans for accidents. If something were to happen to you, and you had no insurance, then you would be up to your eyeballs in debt faster than you could scream “Nurse!”

Your future is too important to leave to chance – please don’t risk going without at least a basic health insurance policy.

Have other student insurance questions? We cover how to save money on student car insurance in this series.  We also take a look at how you can make extra money in college, the best checking accounts for college students, and the best student credit cards.

Today’s average college student has at least one gadget in their dorm room.  Stay tuned for the college student gadget guide where we look at the most affordable laptop, cell phone, iPod, printer, and camera for students.

This review of student health insurance plans and options for getting insured is part of the College Student Money Guide.

If you’re a college student there are a wide variety of discounts available to you every day. You can use them to save money on books, computers, haircuts, pizza, airfare, and everything in between. Here are a few ways to make the most out of your student discounts:

1) Always ask for a student discount - Carry your student ID on you at all times, and any time you buy something, take a second to stop and ask if you can get a discount on it. The only other time in your life you will be eligible to save this much money is when you become a senior citizen. That’s a long time to wait, so take advantage of it now, while you can! A quick Google search with your city + “Student Discount” will return a list of companies in your area that will give you a discount when you show your student ID card.

2) Check your University - Most colleges offer their own discount programs that can net you sweet savings on everything from the local Laundromat to the on-campus restaurants and bookstores. Depending on the school, you may have to pay $20 or $30 to enroll. Call or visit your student resource center to get more information on your school’s student discount program, a list of participating stores, and how much it costs to join.

3) Apple offers computer discounts for college students - This is a 20% discount on computers for students, so if you know you will need to buy a computer before you head off to college, check out Apple’s Student Discounts before you pay full price!

4) Greyhound offers discounted student bus fares - If you need to travel, you can always “Go Greyhound!” To find out more about Greyhound’s student discount program click here.



There are also a several national student discount programs you can join.

These programs are not free but they are pretty cheap, and they offer good discounts on everyday and specialty items.

Let’s take a look at some of the most common student discount programs to see how much they cost, and what types of discounts you can get from them:

The Student Advantage Card - This is by far the most popular national student discount program. For $20 a year you can sign up to get the Student Advantage Card. If you decide to purchase this card you can get discounts between 15% and 40% off at places like:

• Verizon Wireless
• Urban Outfitters
• Target
• Office Depot
• CliffsNotes.com
• Foot Locker / Lady Foot Locker
• Barnes & Noble
• Linens ‘n Things
• Pearle Vision
• Drugstore.com
• People Magazine
• And a ton of other discounts at stores nationwide.

If you frequently shop at any of the listed stores, then you will make back your initial $20 investment quickly. You can see a full list of retailers and student discounts here. For more information on the Student Advantage Card, or to sign up, click here.

The International Student Identity Card - The ISIC is $22 a year and offers discounts to students who travel. You can find deals on airfare, hotel rooms, rental cars, local entertainment, and restaurants. They have a searchable database that allows you to view the discounts in the city or country of your choice.

The ISIC card is recognized internationally, so if you are planning to travel abroad it is probably worth the $22 investment. If you are not planning to travel overseas and just want to see what discounts are available in your area you can click here.

International Student Exchange Card - The International Student Exchange Card is similar to the ISIC. It costs $25 dollars a year to participate, and they seem to have a wider selection of discounts than the ISIC does. In addition to offering travel discounts like hotels, plane tickets, rental cars, and discounts at local stores, the ISEC also includes a complete calling card plan and travel insurance.

If you plan to travel overseas, or if the ISEC program offers discounts in the city you live in, then purchasing the International Student Exchange Card might be worth it. You can click here to search their database of student discounts to see if their program might work for you.

The best tactic for maximizing your available discounts is to join your school’s student discount program first. After all, the food courts and stores on campus are going to be the ones you use the most anyway since they are the closest.

College is a time for learning, and growth, and fun. You are managing multiple classes, possibly a job, and juggling extra-curricular activities. When you throw money management on top of that, well, things can get difficult! No one wants to live on Ramen noodles for four years, so if you can get a discount – definitely take it. Twenty or thirty dollars to join a discount program might seem like a lot up front, but you have to weigh it against the actual value you will get from the program throughout the year.

If you haven’t had a chance, check out the other articles in this series; they cover ideas for decorating your dorm room on a budget, saving money with student discounts, how you can make extra money in college, the best checking accounts for college students, and the best student credit cards.

Check back tomorrow for a review of student health insurance options and how you can compare them with eHealthInsurance.

This list of ways college student can save money with student discounts is part of the College Student Money Guide.

Being young comes at a premium price when it comes to auto insurance. Insurance companies view young people under 25 as a high risk for making claims. It’s not that they hate you. They have factual statistics to back it up. Teenage and college aged individuals are the most likely age group to get into an accident. Some of it is due to inexperience driving, making poor decisions, and reckless driving. But, this doesn’t mean that every college student is a bad driver. In fact, the vast majority of you are very responsible drivers. Here’s a look at five tips to help you get better rates on your car insurance premiums.

1. Choose a higher deductible. For collision and comprehensive coverage, choose $500 or $1000 for your deductible, but make sure that you stash enough cash away in an emergency fund to cover your deductible if you do get in an accident.




2. Choose a safe car to drive. You can’t get around the fact that an insurance company will give you high rates based on your age. But, you can control what type of car you drive. Typically, a 4-door sedan with high safety ratings will yield lower premium rates than a sports car or SUV. I know, the Honda Accord doesn’t get the chicks, but the money you’ll save on insurance premiums can go towards money for dates.




3. Skip on collision coverage. Most young people drive clunkers. I drove a 1987 reddish-pink Nissan Sentra for two years. It was worth about $1,000. A friend of mine drove a $2,000 Pontiac Firebird for a year. If you have a clunker, you probably don’t need to pay for collision. Any car with a book value of less than $3,000 warrants skipping out on collision. The amount you’d spend on the premium could be saved every month and pay for another clunker.




4. Get good grades. Most auto insurance companies will give you a 10% to 15% discount on your auto insurance premium for having good grades. A 3.0 GPA or higher is usually the standard for receiving the discount.




5. Buy another policy with the same carrier. Many insurance companies will give you a discount for having multiple policies with them. I recommend coupling your auto insurance with renter’s insurance. Most college students don’t buy renter’s insurance. It will protect your personal property in an apartment from theft, vandalism, fire, water damage, and many other perils that can destroy your stuff. The best part is that you can pick up a $20,000 policy for $10 to $15 dollars a month.

Search Online Insurance Quotes
The web makes it easy to shop around for coverage. Here are a few places you can get insurance quotes online so you can compare their rates right away:

Saving money is a learned habit. You’re not born with the gift of knowing how to save money. If you develop this habit throughout your college years, you will be very successful with your money. You will typically spend 10% to 15% of your monthly income on insurance premiums in your lifetime. It’s worth it to put the effort into saving money on your premiums.

Some of the earlier articles in this series cover the best checking account for college students, how you can make extra money in college, and the best student credit cards.

Stay tuned for tomorrow when we’ll cover saving money with student discounts.

These tips for saving money on auto insurance for college students is part of the College Student Money Guide.