Whether you have children in the crib or in preschool, one day you will be faced with the costs of higher education such as college and university fees. Don’t wait until the day comes to think about the cost involved, but start preparing for it beforehand. If you do this, you may be able to reduce those expenses significantly.

The time to start on that all-important quest to reduce college expenses starts when you child is in 7th or 8th grade. Your child should be able to easily secure a place in the line for grants and merit scholarships by sitting for the SAT or ACT tests. If they also take the special test prep class it will boost their results. Your child doesn’t have to be a genius to take advantage of a grant or scholarship. Students of average ability can boost their grades with a plan tailored to fit their strengths and weaknesses.

You can save thousands of dollars on your child’s education if they pass the Advanced Placement (AP) test; they will earn college credits automatically. They may even be able to enter college at sophomore level. Students should enroll in all the classes they can possible manage; there are so many available, thee is sure to be some to suit. They can also join the College Level Examination Program (CLEP) and earn credits for what they already know. Why pay more for your child to learn things they already know?

Teach your student to budget wisely once they leave home for college. It is possible to make do without all those credit cards offered on campus. While the free gifts may be tempting, they are only there as a hook to get the students’ application. Credit cards make it too easy to spend unwisely and end up with a big debt that is difficult, if not impossible, to pay off.

While many students set their sights on those big name colleges that cost the earth, a wise student will look into doing at least half their chosen course at a local college. This can save a great deal of money on course fees - and if that seems confusing, you can even get help to compare academic and scholastic levels of specific colleges through CAPlus, a Christian based organization in the Northeast.

Remember that the fees charged by private colleges are usually higher than public college fees, because they don’t get as much government funding. It may be possible for your child to attend college on a part-time basis and work to help pay fees.

 
 

While paying income tax is something that we can’t get out of doing, no one wants to pay more than they have to. In fact, it is a wise person who takes a critical look at the amount of tax they pay and sees how to reduce it. This is not dishonest; there is no need to pay Uncle Sam any more than is legally required.

One way to reduce your income tax is to be taxed on less than you make. How can you do this legally? It’s simple; participate in that retirement fund your employer sponsors. If it is a 401(k) or a 403(b) scheme, you can put in a whopping $15,500. Your employer deducts this amount - or whatever you decide to put in - before your taxes are calculated, so you won’t be paying tax on it.

If you are over 50 years of age and have not used that retirement fund much - or even if you have - then you are in luck because it is possible to make a catch-up ‘donation’ of up to $5,000. Since this also reduces your pre-tax gross income, you will pay less tax.

Most people know that if they give to a charity, it is tax deductible, but this also applies to goods and services, so if you have stuff you don’t want, you can donate it to charity, get a receipt and claim it off your tax. The same goes for services; just be sure you get a receipt. Every little bit mounts up.

Your employer may also sponsor a flexible spending plan for child-care and certain medical expenses. It will pay you to participate in this, as once again, your employer will deduct this amount from your pay before calculating your income tax.

Making solar improvements to your home will gain you certain income tax benefits that may be up to the value of $2,000. Make sure this tax benefit is applicable to your improvement before you go ahead.

Whether you prepare you own tax returns or have an accountant do it, you may save a considerable amount by itemizing. You can accept the flat amount offered - which was $3,300 for 2006, or you can itemize. This is certainly worthwhile looking into, particularly if you have a mortgage, because the interest you pay is an allowable deduction for most people. This is mostly enough to put you over the limit and make itemizing worthwhile. Real estate taxes (but not added charges like garbage pick-up), and state and local taxes are also deductible.

 
 

It’s really quite easy to analyze your spending habits, but why is it necessary? If you are determined to save money, you need to know what you are spending it on. It could be that you are spending money on something that you don’t need - as most of us do. But you may be spending far more than you realize, like the person who spent close to $1000 a month on comics.

It will also show you just how quickly seemingly small amounts mount up. For instance, that $3.00 latte you buy on the way to work every day and when you go out at the weekend will cost you $768 by the end of the year. So how do we analyze our spending habits?

One way is to keep a notebook and pen on you at all times and write down each purchase, even the small things like your daily newspaper and that candy bar. But when you are in a hurry, it’s easy to think you’ll do it later and then forget about it. In that case you could set aside a time every evening when you go over all that you bought throughout the day and write it down.

An easier way for some would be to use your credit card to pay for everything for a month, that way you’ll have a record. This is a good way to go, as you will also have the record of other necessary expenditure. It is helpful to pay all those larger bills by doing online banking, and then you have a good record at your fingertips. You can see where all your money went at the click of your mouse.

Whichever way you do it, the importance of keeping records cannot be overstated. If you draw out a wad of cash to pay up all your monthly bills, there is no real record apart from your receipts, which can get lost unless you are diligent in keeping them.

Once you have that record, you can comb through it to see just what you are spending your money on. You may find it is very easy to cut out those things that you don’t really need. Sometimes we just buy things out of habit. Newspapers and magazines are two things you may be able to cut back on, even if you simply halve your purchases. If you really need something to read on the train, then how about borrowing a book from the library? Or if you buy magazines for the puzzles in them, it may be better value to purchase a puzzle book. That way you’ll get a great many more puzzles for about the same cost. Saving money can be quite simple; but you need to analyze your spending habits first.

 
 

When most families struggle to live on two incomes, you may think it would be impossible to live on one, but it can be done. But before you throw you job in, it will pay to take a good hard look at what your expenses are and how you can whittle them down.

One easier way to see what your running expenses are is to bank and pay bills online. This will enable you to see exactly how much money goes to what expense and when. You need to add up all your expenses per week or fortnight and see if they exceed your one income. If they do, then see where you can cut back.

Do you eat out a lot? Try cooking bulk meals on your days off and freezing portions to eat later. This will save an enormous amount and can be quite fun if you both get in and do it. Do you buy your lunch at work? Taking it is a great deal cheaper and probably healthier. The four or five dollars you spend on buying one sandwich will buy enough bread and fillings for one week - or more. That’s not counting the cost of the drinks you buy.

Many people think that they really have to have that latest new gadget, but you might ask yourself why? Just because someone invented it, do you really have to buy it? There are other options. Why buy new stuff when you can get pre-loved stuff that’s just as good at the thrift store for a third or less of the new price?

 If one of you stopped work, would you need that second car? It’s not just the fuel, but the insurance, registration, repairs and new tires that cost money. Of course, living on one income may not necessarily mean that one of you stops work. You might both want to keep on working and save the whole of one wage to go towards a dream you have. It may be a new house, a holiday overseas or starting up a business.

To do this, start gradually by saving a certain percentage of that one wage for a month, then you’ll gradually find other ways of cutting your costs to increase the percentage. As you see your savings increase, you’ll be highly motivated to continue in this manner until you are saving the whole of one wage. Others have done it, why not you?

 
 

It all depends on what your definition of a good life is. If you want to spend a thousand dollars on a new outfit every week and drive around in a stretch limo, then yes, to save money you will certainly need to be deprived of these things. On the other hand if you live an ‘ordinary’ life with a car, a house and two kids at school then the answer is no. There are many things you can do to save money.

Take entertainment for instance. Instead of taking the kids to the movies, you could hire DVDs for them to watch. Better still; take them to the beach for the day. It’s fun, healthy and FREE. Likewise with walking and jogging activities. You could let them camp out in the back yard for a treat. Have a campfire and roast marshmallows. Most kids would certainly prefer to do something like that than go to the movies, especially if they could have their best friend to stay over.

Do they have to play all that sport and do costly after school activities? Why not get the kids into gardening instead? This is good exercise, they’ll learn about saving the environment and as well, save you the cost of buying vegetables. When the table is laden with all those healthy homegrown vegetables, you’ll never feel less deprived. And it’s a great way to spend quality time with them.

If you live close to the shops, you could consider walking there to get those things you just ran out of - but make sure it’s safe. This will save you the cost of fuel, wear and tear on the car and keep you fit and trim. You could buy a second-hand bike and cycle there and back if it’s too far to walk.

If you’ve been in the habit of driving the kids to school, then how about letting them walk? You could go with them for safety. Even doing this for two or three days a week will save quite a bit of fuel over a year.

Cutting down on snacks and treats can only make your kids healthier and if they really want some munchies, get them making their own. Popcorn is simple to make, homemade cookies much healthier, and if they make their own ice treats their creative side can get to work in a number of fun ways. Try crushed berries and fat-free yogurts, or simply mix-up cordial frozen with pieces of fruit. Deprived? Not a bit of it!