College is an investment for a lifetime - the gift of a college education can open the door to a world of opportunity for your child or grandchild. Saving, even a little at a time, can make a big difference down the road. With the cost of a college education continuing to increase, the key is to start saving early and regularly.
Saving a Little Can Go a Long Way
Remember - no matter how much you save, even a little can make a difference.
Like any other major investment, the key to saving for college is to start early and save regularly. By saving a set amount at set times, your money can grow as your child does. And before you know it, you'll be just as ready for college as they are.
Set your college savings goals realistically. You may not be able to save enough for all four years of tuition, room and board, and other expenses - but you can save enough to give your child the right start.
A family that begins setting aside $50 a month when their child is born can accrue over $21,000, in an account that earns 7% interest per year, by the time the child turns 18.
Consider a 529 Plan for College Savings
A 529 Plan allows you to save money for your loved one’s college expenses at a wide range of private and public educational institutions. A 529 plan is a tax-advantaged investment plan designed to encourage saving for the future higher education expenses of a designated beneficiary (typically one's child or grandchild). The plans are named after Section 529 of the Internal Revenue Code and are administered by state agencies and organizations.
All withdrawals from 529 plans for qualified education expenses will remain free from federal income tax. Many states mirror the federal tax advantages for 529 plans by offering state tax-deferred growth and tax-free withdrawals for qualified higher education expenses.
Contact us today to learn more about 529 plans and all of your college saving options.