by JQ Adams

Created on: January 23, 2009

This article is the first of a five-part series on finding college money, whether for you or your child. In this article, you will see how pennies a day can quickly add up to more then $6,000 in free college money, and where that college money can come from. Begin socking that money away into a 4.5% interest-bearing savings account or CD at your local bank, and that $6,000 will be more then $11,000 by the time your child goes to school. Save an additional $25 a month, and you will have accumulated more then $16,000 in an 18-year period. Not bad for a few pennies here and there.

AUTOMATE YOUR SAVINGS: Many banks nowadays are offering free transfer programs from checking to savings accounts. Some banks will even waive their fees if you sign up for this feature. Other banks are more then happy to transfer money from an outside bank and deposit it into one of their accounts without ever charging you a dime. The minimum monthly transfer amount is usually $25 (less then a dollar a day) and is a painless way to save for your child or other emergency expenses. Sharebuilder.com (who recently merged with ING Direct) will let you transfer money whenever you want directly into their money market account (which currently pays between 4-5% interest), or buy any stocks that you designate for as little as $4. The account is fee-free and is an excellent way to build a college fund.
After 18 years: continuous transfers of $25 for at 4.5% interest will result in a college fund just short of $8,000 ($5,400 with no interest). That's $2,600 of free money from your bank just for squirreling away the price of a couple movie tickets. Now imagine how much more if you asked "the grandparents" to do the same thing.

CASH FOR CANS: I know cashing in cans may seem time consuming and trite, but it can actually be a good way to save up pennies for college. Imagine if you, by yourself, drink one can of soda a day. If you cash in each can, you would average about $0.025 per can. At the end of one year, that would be an additional $9.13. Not much I know, but times that by 18 years, and you would receive an additional $164.25. If you drink two sodas a day, you can double that number. For a family of four at one soda a day, that would be an additional $657. Why throw out that much money when you can give it to your child.
After 18 years: A family of four's one-a-day soda consumption would equal $657. (With interest of 4.5%, this would be an additional $970.)

UPROMISE.COM: If you have heard about Upromise,

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