For those of you who have a child headed to college soon, here is an idea for you. Take the money that you save on coupons and put it toward their college fund in a 529 account. All 50 states have 529 accounts that allow you some great tax benefits. Here is how it works in five easy steps.

1.  Couponing

The first step is to use coupons when shopping. I love to use coupons on almost everything.  Do a Google search for Buy.com deals, to find a bunch of coupons on almost everything you can imagine.  With a child heading to college soon and involved in many activities, I find it almost mandatory. Get your kids excited about the fact that they are helping you save money for their education and they will even help you find the coupons. Think of all the products they may throw away without looking for coupons. Furthermore, think about the people they know that you do not know that may be willing to give your child their coupons.

2.  Save the Money

The second step is to take the money you saved by using coupons and put it in the bank. Let the money accumulate in the bank until you have enough to make a payment to your 529 plan. Some states require you to submit a certain amount each month, while others allow you to make contributions on your own schedule.

3.  Enroll in a Plan

The third step is to enroll in a plan. Investors need to choose a 529 plan. It is best to consult with a tax attorney to find the best plan for your circumstances. Of course, you can pay for that tax attorney using savings from couponing. Often, you can also find a coupon for a free tax consultation online.

4.  Make a 529 Deposit
The fourth step is to make a 529 deposit. Either on a specified schedule or on the schedule established by the 529 plan, make a payment. These payments often require an automated withdrawal so make sure and connect your 529 plan to the account where you are putting your savings from couponing. Most plans allow you to contribute up to $300,000 a year. In most plans you can also change the beneficiary, a great alternative for those with more than one child.

5.  Save On Your Taxes

The fifth step is one you will love. You get to save on your taxes. When tax time comes most of us groan. You will not groan as loudly when you have a 529 plan. The investment grows tax-deferred. When your child gets ready to go to college, the money comes out federally tax-free. Secondly, many states offer state tax benefits when saving with a 529 plan. Parents retain control of the money unlike with a Uniform Transfers to Minors Act.

With this plan, you get to use coupons you are using anyway. You get to save that money for your child’s education, tax free. You get to fund your child’s education, without large bank loans with high interest rates. You get to save on your taxes. That sounds like a sweet plan to me.

This guest post was written by Kimberly Willis, who enjoys saving money for her family, improving her credit score, and writing about personal finance and budgeting.

Technorati Tags: 529 accounts, College Education

Everyone gets into a money crunch now and then and has to look for ways to save money in the budget. If money is tight and you need to find ways to save money, there are some simple things you can start doing today that will make a difference in your bottom line. It boils down to making choices between needs and wants. Here are some easy ways to save money by evaluating your current spending choices:

Ways To Save Money #1: Downgrade your cable TV or get rid of it altogether.

Have you looked at your cable TV bill lately? You may be paying for services or channels that you are not watching. Now is the time to reassess your TV habits and decide if the few shows you watch are worth the $50 or more per month bill. Check the available packages to see if maybe a lower priced option would work for you or consider giving up your cable TV for a trial period, say a few months. You might find that you don’t really miss it. Potential savings -$50 or more per month depending on cable TV packages.

Ways To Save Money #2: Learn to cook at home and stop all the restaurant dining.

If your budget needs a drastic overhaul, give up dining out for one month. Borrow a basic cookbook from the library and whip up some easy meals. Potential savings – $100 or more depending on how often and how much you typically spend eating out.

Ways To Save Money #3: Brown bag your lunch.

I know it sounds boring but it doesn’t have to be. The fact is preparing your lunch at home is one of the easiest ways to save money. Make salads and sandwiches that you enjoy, or take leftovers from last night’s dinner. Potential savings – If you typically spend $5 per day on lunches that equals $25 per week or a $100 per month savings if you brown bag it all month.

Ways To Save Money #4: Get rid of your cellphone or switch to a lower priced plan.

Are you really using all those special features? Do you use your cellphone or is it for emergencies only? Check with your service provider about a lower priced plan that will still meet your needs or get rid of it altogether. Potential savings – $35 or more per month depending on your cell phone plan.

Ways To Save Money #5: Cancel memberships to places such as gyms or local clubs.

Many times these fees are automatically deducted from your checking account whether you use the service or not. Potential savings – $50 or more per month depending on membership fees.

Need more ways to save money? See our list of 50 chicken breast recipes to help save on your grocery bill.

Technorati Tags: easy ways to save money, money crunch, Personal Finance