4 Unexpected Ways To Save For College By Investing

Starting a college fund for our kids can be challenging, especially considering inflation and the rising costs of practically everything, but this investment is important for the future of our children. Sure we’ve all heard about tradition avenues, even some non-traditional methods such as life insurance policies with a “grow-up plan” available, this are additional avenues in investing towards the education of our children when they mature.

But investing in almost any form, even “safe” methods like life insurance come with their risks along with potential rewards.  Here are four unexpected investment opportunities that can turn into cold, hard cash when it comes to paying for college tuition in the future:


#1 – DIAMONDS – An Investor’s Best Friend?

They may be a “girl’s best friend,” but they have also held up remarkably well over the years when it comes to ROI. While their prices rise by approximately 7% in our country, globally speaking, they’ve seen regular double-digit increases, which increases their potential value worldwide.

While USA prices were under a rise of 10% annually, overseas markets have seen 26% in China  and 37% in India. Compare those to an annual yield of a CD account, even the highest returns are less than 2% yearly.

#2 – ETD’s – Affordable, But Risky or Rewarding?

ETD (Exchange Traded Debt) is a lesser known opportunity that comes in $25 increments, which makes in an affordable investment for many people, especially single mothers. These structured investment bonds pay quarterly dividends that are at a higher rate than the traditional yield of the company’s stock, usually between 6 and 7 percent annual rates are common.

ETD’s take 10 and 30 years to mature and they can be “called” early by the company that issued them leaving you with the original starting amount of your cash. This means that your future interest you were expecting could disappear.

#3 – REIT’s (Real Estate Investment Trends) – Are they safe?

Many are hesitant to invest (or reinvest) in the real estate market when we still looming from the housing crash in 2007 and beyond. Some blame bankers and investors for this economy busting era, but REIT are different than traditional property investments.

Real Estate InvestingREIT’s can be bought, sold and exchanged similar to stocks on the major markets since they are investments in commercial real estate properties. Some REIT’s pay dividends to their investors quarterly and others mature over time and can be sold for a profit.


Statistics tell us that while 20% of people are using investment plans to save for their kids college coffer, 18% of parents are using their credit card rewards and other options (21%) to reinvest or save towards tuition. Since credit card rewards are just that, money that we earn that can easily be put aside, think of any “other options” where you could put aside some extra cash and then invest that into your child’s future.

Whether it’s that morning trip to the coffee shop or quaint cafe for our daily caffeine fix, think of other possible ways of curbing costs. Saving a few dollars or some spare change every day can add up to big rewards later on when invested properly.

BUYER / INVESTOR BEWARE: As with any investment opportunity, there are often many different types of platforms available and none of them come without risk. Minimally, be sure to do your homework before putting your hard-earned dollars into any avenue, but the best course of action is to seek the advice of a long-term financial advisor before taking the leap.


Hilary Smith has writing in her blood and communications on her brain. This yoga enthusiast appreciates a daily workout and loves keeping time with two children. A mother by day and writer by night, Hillary keeps abreast of the latest tech apps as she focuses in on the field of digital parenting.

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