(BPT) – What do parents of toddlers and parents of high school students have in common? Both worry about paying for college. With the constantly rising costs of higher education, financial aid becomes more important than ever for making the dream of a college education possible. So if you’re interested in receiving financial aid, where should you start?
“The Free Application for Federal Student Aid, or FAFSA, is your gateway to money for college from both the federal and state governments for most colleges and universities,” says Mark Kantrowitz, author of “Filing the FAFSA” and “Secrets to Winning a Scholarship.” “Filing the FAFSA correctly is crucial, as it has a direct effect on how much money you receive from various types of financial aid.”
College Ave Student Loans partnered with Kantrowitz to offer top tips for maximizing your need-based financial aid for college:
1. Save strategically
When it comes to covering the cost of college, financial aid should be at the forefront of your mind, whether you’re ready to file the FAFSA right now or not. It’s best to save money for college in a parent’s name, rather than the student’s, as the FAFSA assesses money in the parent’s name at a much lower rate. Every $10,000 in student assets reduces aid eligibility by $2,000, while every $10,000 in parent assets only reduces eligibility by up to $564.
2. File early
The earlier you file the FAFSA, the better. Right now, you should file the FAFSA as soon as possible on or after Jan. 1, but starting in 2017, you can start as early as Oct. 1. Ten states award aid on a first come, first served basis, and 12 have hard deadlines in February and March. Specific schools can also have specific deadlines, and students who file early may qualify for more aid. So, as a rule of thumb, file the FAFSA in January to maximize your eligibility.
3. Minimize income in the base year
Using income and tax information from a previous year, or base year, the FAFSA calculates the financial strength of your family. Because the formula is heavily weighted on income, it’s a good idea to reduce your income in the base year. If you can, avoid realizing capital gains. If you must sell stocks, bonds or other investments, try to offset capital gains with losses. Taking retirement plan distributions during the base year will also count as income.
4. Reduce reportable assets
Minimize your money in the bank by using it to pay credit card and loan debts. This not only makes good financial planning sense, but may help you qualify for more aid.
5. Maximize the number of children in college at the same time
Something as simple as having more than one child in college can dramatically increase your changes of receiving more financial aid. While you can’t change the ages of your children, you can use this impact on aid eligibility as a deciding factor when determining whether to allow your child to skip a grade.
6. Seek generous and low-cost colleges
There are many generous colleges, including some in the Ivy League, which implement “no loans” financial aid policies. This means they replace loans with grants in the student’s need-based financial aid package. Additionally, in-state public colleges are likely to be your least expensive option, especially after subtracting gift aid, grants and scholarships.
7. Organize your documents and information
Filing the FAFSA is all about the details. Pay attention and stay organized to get the job done right, starting by filing the FAFSA for the correct year and staying on top of deadlines. Make sure to use the right Social Security Number, date or birth, marital status and correct financial information. Follow the instructions and fill out the forms as carefully as possible to get the most accurate results.
Once you receive your financial aid award letter and assess your savings, you’ll have time to consider taking out a loan. If you need it, find a simple option that works for you, such as College Ave Student Loans.
Navigating the world of financial aid can be tricky, so follow these tips to maximize your eligibility and make college a reality. For more information and resources, visit collegeavestudentloans.com.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
It’s a new year and probably time for a new or updated single mom budget. What do you typically use to create a budget? Is it something you will use again and again? Maybe you are looking for a new tool or worksheet to jump start the process.
Reasons to Create a New Single Mom Budget this Year
Maybe you don’t think you need to create another budget. Here are two reasons you might want to consider creating a new budget:
You got a raise
You lost income because of a layoff.
Regardless of the reason, it is a good idea to update your budget so you know what will happen with your money this year.
I admit, I am pretty lazy with it comes to making a budget. I’ve used several tools and either didn’t follow my budget religiously or I completely forgot about it. When unexpected expenses come up the budget goes out the window.
Me Budgeting on a Smaller Income
When I got laid off from my “regular” job budgeting was pared down to rent payment, utilities, phone, and groceries. I had to keep it simple to stay sane. In the process of reducing expenses, I can find ways to make extra money like selling electronics, putting clothes in consignment, sell jewelry and especially sell my diamond engagement ring I’ll never wear again.
To jumpstart the budget creation process, I’ve compiled a list of single mom budget worksheets to help me and you work this thing out together. I can’t promise I’ll be good, but I’ll do my best.
1. Single Mom Budget Sanity Worksheet
UPDATE: Download the Automatic Printable Single Mom Budget Worksheet!
I have created a printable single mom budget worksheet of my own that you can download for free. Simply enter your after-tax monthly income and it automatically creates your budget for each category.
Click the image below to go to the download page for the MS Word file and follow the instructions on page 2 (See the demo video below).
6 More Free Single Mom Budget Worksheets
2. Microsoft Office Budget Templates I think most people with Microsoft Office have used their budget templates. Just download to Excel or even Word to complete and print.
3. The Household Planner Free Printable Budget This budget worksheet has the typical elements most budget worksheets have. You have your income and expense columns as well as your categories to work with. It is a PDF file you have to download and print.
4. Dave Ramsey Budget Tools Dave Ramsey has three different budget worksheets to choose from. The first is a quickie budget worksheet. The next is a Cash Flow worksheets that is more comprehensive. The last is a budget worksheet for irregular income. I think these are great options.
5. Basic Budgeting Worksheet BetterBudgeting.com has a free printable worksheet to help you create a budget. It’s pretty straightforward. Like the others, you simply download and fill in your income and expenses. They also have a monthly spending worksheet to help you keep track of your expenses.
6. Home Budget Worksheets from CCC These website has a budget in your pocket worksheet. It is a mini-planner you can keep in your purse or pocket for quick reference. They also have a workbook and an Excel and PDF worksheet you can download.
7. Practical Money Skills Budgeting This is one of my favorite websites to learn about money. They have a simple (and colorful) one page budget worksheet. This is great for the person that is making their first attempt at budgeting or just want to move to a simpler method.
These worksheet should get you started on your single mom budget for the year. Feel free to play with it to find the right balance. Also, think about any emergencies you think will come up and try to factor them in. It could be a flat tire, an emergency trip to see a family member, a medical expense, or anything.
Remember to Give to Get More Money
Remember to factor in giving as well. It could be your favorite charity, helping a friend, or donation to your place of worship. Regardless of how you choose to give, just get into the habit of giving. It’s one secret way the rich use to remain prosperous, plus it just feels good!
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
It seems to me that the words “teens” and “savings” are on opposite ends of the spectrum. Well at least with my kids. In a time when there is easy access to just about everything and endless marketing messages, saving is the last thing kids are thinking about. The other side of the coin is that kids technically don’t really need to save for anything because many kids get whatever they want from doting parents (I’m talking to myself here too). Work, sacrifice, and waiting seem like foreign concepts. I’m not bashing teens, but rather bringing to light the barriers to savings they seem to have.
Empowering Teens to Get Into the Savings Habit
Getting in the habit of saving is not something I’ve pushed very hard. That said, I want my kids to learn responsibility with money so I’ve done a few things to help them see the importance of saving. My problem is that I love giving them awesome things no matter how large or small. I love surprising them and seeing their faces light up. I almost think it is an addiction. But I’m recovering because I see that giving to them all the time instead of letting them earn and save for what they want does not warrant gratitude. That is what I really want them learn; how to be thankful and appreciative of what they get.
Lessons I’ll Use to Empower My Teens to Save
So my lesson begins in teaching them how to save. I read an article on the Regions Bank website about this very topic. They offered great feedback that I’m sure I can begin implementing. They offer five tips to encourage teens to save money.
Develop a Savings Habit
Use Online Tools
Differentiate Between Needs, Wants, and Wishes
Establish a Financial Game Plan Together
Keep a Record of Spending and Savingoffer begin implementing.They offered great feedback article on REhat they get.
and save for what they want does not wa
Encourage the Savings Habit
When my kids get birthday or holiday money it’s tempting to spend it all in one place. My 14-year-old son just wants food and games at this stage in life. As long as he has food and a bed he’s pretty happy. Recently he’s been talking about doing paintball for his birthday so he said he wants to save for that. My daughter wanted an iPad when she turned 15. I made a deal with her to save her birthday money and any other money she made to pay half for the device. She agreed and kept up her end of the bargain. I paid the other half and insurance. She still holds on to her precious iPad today even though she complains that it’s a bit outdated. She will always remember saving for what she wanted.
Online Banking
I’m big about banking online and being connected. I use tools like my bank app and Mint.com. My daughter is connected to our bank and can check her account balance when she needs the information. She can also see her savings account amount. I’ll have to set up an account for my son on my account and start letting him use his card and track his expenses. This is a good habit to start.
What they Want vs What they Need
Paintball is definitely a want for my son. Like I said before, he is all about playing games. He hasn’t hit the “gotta look good for the ladies” stage just yet. So buying clothes, shoes, and cologne is not a top priority. He’s not into designer sneakers so that has saved my budget. He loves getting new shoes when I get them but doesn’t make a big deal out of it.
My daughter on the other hand loves new clothes, make-up, and electronics. She wants them but is still working on making the most of her current wardrobe. She has had a wakeup call recently since she drives her own car now. Clearly she feels the need for gas, maintenance, and registration fees. She feels the pain each time she goes to the gas pump so her trips are few and far between; even to the mall. She has said she needs to save her money for when she goes to college and needs gas money. Savings for her will be kind of forced after all.
Planning for Their Financial Future
As they grow and their needs change in the process, we will need to talk about their financial future. My desire is for them to learn about business and entrepreneurship. They have it in them to use their creativity to provide a product or service. My daughter has dreams of being a private pilot. It will require a pretty large chunk of money to go through the final classes and do her test flight.
In the long term they have goals of finishing school and training for their profession. We will plan to sit down and discuss those goals and come up with a financial game plan.
Recording their Financial Activities
When I grew up I learned the basics of how to track my income and expenses using pen and paper. A simple ledger was enough to keep up with my allowance and payments for my small business. Today there are several options for recording financial activity. As part of my son’s curriculum he will learn how to record income and expenses using a simple spreadsheet system. It will be a great start and help him sharpen his math and critical thinking skills.
Empowering my teens to save and manage their money is a good first step to empowering them through life. They will feel in control of their finances and be able to make good choices throughout their lives.
This post was sponsored in part by Regions Bank. The content and opinions are my own.
Images by StockImages, suphakit73, and adamr at freedigitalphotos.net
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
It has been an amazing few days for me because I am in a national magazine! Well me and RichSingleMomma.com that is.
How exciting for me and so wonderful when friends call me to say they saw me while casually browsing through one of the best selling magazines in the country.
The mystery publication is Essence magazine. I am in the December 2013 issue which came out this month. Ironically a couple of my friends saw it before I did so I was scrambling trying to find my copy.
Watch the video
My appearance in the Work and Wealth section is because of a shopping challenge I was a part of along with bloggers at sistersavealot.com and doublesavingdivas.com. The challenge was for us to spend $250 on 10 premium gifts for family and friends using deal sites, mobile apps, coupons, and unique savings strategies.
I bought fantastic gifts for my family and friends at 78% off retail. I’ll share my techniques in a future article or video. I had so much fun with the challenge and proving you can buy great gifts for less.
What strategies do you use or plan to use for your gift buying this holiday season? Are you looking for a gift guide to help you find great deals?
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
Parents of special needs children have enough on their plates just tending to the health, educational and emotional needs of their kids – not to mention often having to cope with drastically lowered income because of reduced work hours or having to pay someone else for childcare. So it’s not surprising that many of these parents haven’t had time to hatch a long-term financial plan in case their kids need care after they’re not around.
Fortunately, many government programs and community resources are available to help relieve the financial burden of parenting special needs children. But eligibility criteria are complicated and the application process time-consuming. Plus, if you’re not careful, you or well-meaning relatives could inadvertently disqualify your kids for future benefits by not structuring their inheritances correctly.
Here’s a brief overview of key government assistance programs:
The Social Security Administration provides two types of disability coverage: Supplemental Security Income (SSI) and Social Security Disability Income (SSDI). Rules and eligibility requirements differ between the two programs – and benefits differ for children and adults.
In a nutshell, SSI is a needs-based, cash-assistance program for disabled people of any age in low-income families with limited resources. Children qualify for SSI benefits if they meet certain strict criteria outlined in SSA Publication 05-11000 (www.ssa.gov/pubs/11000.html).
SSDI is a separate program funded by payroll deductions (part of FICA). Although children sometimes receive SSDI payments if their parents are disabled, their eligibility is based on their parents’ disability status, not on their own. However, after turning 22, already disabled children may qualify for SSDI on their own if at least one parent qualifies for Social Security benefits.
Eligibility rules and definitions for SSI and SSDI are complex. To see if your child qualifies, call Social Security at 1-800-772-1213, or search the Disability and SSI tabs atwww.ssa.gov. One particularly helpful resource is “Benefits for Children with Disabilities,” SSA Publication No. 05-10026.
Many families inadvertently jeopardize their disabled child’s eligibility for government-provided benefits by opening accounts in the child’s name or designating them as beneficiaries. Unfortunately, federal law dictates that recipients of SSI, Medicaid and many state assistance programs will be disqualified if they have resources worth over $2,000. So, if Uncle Jerry leaves your daughter $10,000 in his will, she could lose her benefits.
One good alternative is to create a special needs trust, whose assets can be used by its trustee to manage the finances and personal effects of a disabled person. Trusts are governed by state laws and should only be drafted by an attorney familiar with this area of law.
Some parents name the trust as beneficiary of life insurance policies to ensure a source of funding if they die before their child. (Stay current on your premiums.) Other possible funding sources include cash, stocks and other investments, retirement plan death benefits, home sale proceeds and inheritances from other relatives and friends. Just make sure that the trust –not the child – is named beneficiary.
Preparing a special needs trust can be expensive – possibly several thousand dollars, depending on your situation. But weigh that against the prospect of your child losing out on a lifetime of government-provided benefits because of an accidental inheritance – speaking of which, be sure to let any well-meaning relatives or friends know about the trust.
Jason Alderman directs Visa’s financial education programs. To participate in a free, online Financial Literacy and Education Summit on April 17, 2013, go towww.practicalmoneyskills.com/summit2013.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
Some rules are meant to be broken – like the one about not wearing white after Labor Day. Others should remain sacrosanct, such as the rules of good credit. Those are the kind of rules that can make life easier and happier when you follow them – and help ensure your finances stay in good order, too.
Unlike fashion rules, the rules of good credit are really not subject to interpretation or personal opinion. They derive from the formula that credit bureaus and lenders use to calculate your credit score.
So what are the 10 unbreakable rules of good credit? Here they are in descending order, a la David Letterman:
10. Create a budget and stick to it. Your budget should cover everyday expenses and allow for the smart use of credit.
9. Use credit cards wisely. Smart use of revolving credit – not carrying a balance, paying the full balance immediately – is an important component of a healthy credit score. Unwise use, such as running up debt, can lower your score. And in that vein …
8. Always pay more than the minimum balance on your credit cards. Ideally, you would pay off the entire balance right away, but if that’s not possible, pay more than the minimum – as much as you can afford. Paying only the minimum balance means it will take years – and thousands in interest charges – to pay off your debt.
7. When applying for a loan – which includes applying for new credit cards – do so wisely. Comparison shop and make your applications (if you’ll be making more than one) in a short amount of time, so that those credit inquiries will only count against your credit score once. Stretching applications over time, or making too many in a short amount of time, can negatively impact your credit score.
6. Your credit utilization ratio – the amount you owe compared to the amount of credit you have available – is a key factor in determining your credit score. Avoid maxing out your credit – including credit cards or home equity lines of credit. At any given time, try to keep three quarters to two thirds of your total available credit free for use.
5. Don’t immediately close a credit card account just because it’s paid off. Doing so can skew your credit utilization ratio. Before you close an account, be sure you understand what impact – if any – the action will have on your credit score.
4. Practice identity theft protection measures. From shredding sensitive paper documents before trashing them, to keeping your PC’s virus protection software up to date, it’s important to take steps to protect your credit from identity theft and fraud.
3. If you’re in financial trouble, don’t practice avoidance. If you can’t pay your bills, contact your creditors to work out a payment plan, but know that not making minimum payments may negatively impact your credit score. Being proactive may not solve your financial woes but it can help minimize the negative impact on your credit.
2. Keep an eye on your credit score. Maybe you’re in the habit of reviewing your credit report once a year, or only check it when you’re planning to apply for a loan, but it’s important to stay on top of your credit score all the time. Fortunately, the Internet has made it easy to monitor your credit report and score. Enrolling in membership of a product like freecreditscore.com can help you understand your credit. With enrollment, you get credit score alerts, identity protection alerts and fraud resolution support if you find an error on your credit report.
And, the No. 1 rule of good credit:
1. Pay your bills on time. A consistent, long-term history of timely bill paying goes a long way toward a healthy credit score. In fact, a solid payment history can pull up your score even if there are other negatives on your credit report, such as a high ratio of credit used to credit available. Not paying your bills on time – or at all – is a surefire recipe for bad credit.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
Hi! Welcome to RichSingleMomma.com. I started this website almost a decade ago because I couldn't find any blogs back then that helped single moms with money. I was having some success in that area so I decided to share what I knew about side hustles, making extra money, and managing money. Read more...
Images by StockImages, suphakit73, and adamr at freedigitalphotos.net
