In America today, there are over 10 million single-parent households, making up about 30% of homes in the US. In a portion of these homes, single parents receive support from their former partners, but a substantial number of single parents live on their own income. Frequently, a non-custodial parent is unable to contribute alimony or child support for a number of reasons.
This puts a lot of pressure on the custodial single-parent to provide for their children financially and give the children what they need. Money for college is no exception.
Currently, university tuition rates are skyrocketing. This has made saving money for their children’s college fund a daunting task for many single parents. However, there are several ways that you can start and grow a college fund for your children that you can afford. You can make small contributions to your child’s trust fund over a long period of time that can allow your child to pursue higher education.
Even if a conflict exists, you can work to put differences aside in an effort to work together even if he or she is contributing nothing to your child’s future education. The goal is to make him or her aware that:
The idea is to always leave the option open to give without guilt when your ex is able to help out. Empathy can be an effective tool you can use to help you collect a substantial amount of money for your child’s college education.
There are plenty of deductions and tax credits that you should use while you are paying for your children’s college fund. The IRS specifically provides the following tax credits:
You should plan for the financial burden that tuition puts on your finances in advance and take these tax benefits into consideration. This will allow you to have more cash flow down the road. Plus, if you have more than one child, you can strategically use the benefits to help pay for college for your other children.
It’s much easier to pay for college when scholarship money is on the table. Whether it be through sports, academics, or both, intellectually engaged children are top contenders for the best scholarships the higher education system has to offer.
It’s much easier to pay for college when scholarship money is on the table. Whether it be through sports, academics, or both, intellectually engaged children are top contenders for the best scholarships the higher education system has to offer.
Seventy percent of all scholarships awarded pay full-tuition benefits. Of course, not all children thrive in the rigors of academics. If there is an area in which your child thrives, you should encourage your child to apply for a scholarship that highlights your child’s area of expertise. For example, there are also scholarships for excellence in a particular field, such as music or writing.
Sometimes, an ex will ignore his or her obligations towards paying for your child’s college. Your ex may believe that paying child support or alimony is enough, but your ex should be willing to pay for your child’s college education if you are.
By working with divorce professionals, you can have your post-divorce agreement amended to include college tuition savings. Lawyers also possess a keen eye for family and financial planning. It’s worth making the call.
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