It is never too late to start a fund for your child’s higher education. Setting financial goals early on can make a huge difference over time.
No effort is too small to save money for education costs. There are many options that can help you do this. Some examples are opening a 529 college savings plan, creating automatic transfers between your banking accounts, and applying for scholarships.
This process doesn’t have to feel overwhelming. Take it step-by-step, and you will see big results in the long term!
529 Savings Plans
There are tax advantage accounts that allow you to save money for education. These are known as 529 savings plans, and there are rules and plans that vary by state. In general, you can start adding money as soon as you open the account.
There are annual limits to how much money you can deposit. Typically, there are minimal amounts you have to put towards the account each month.
When the time comes, the money accrued becomes available for students to use for approved education expenses. This can be a great option for those who want their dollars use purposefully or allocated for specific needs.
Automatic Banking Transfers
Automatic transfers are a great way to proactively put money aside for education expenses. There are different ways to set them up. It may depend on your payroll services or your bank whether you designate a certain dollar amount or specific percentage from each paycheck
This is beneficial no matter how large or small the contribution is. If you move this money into an interest-yielding account, it will be worth more in the long run.
When in doubt, work with a financial advisor to make sure all of your goals are met in the short- and long-term. Having control over your finances is very freeing!
Scholarships and Financial aid
When it is time for students to submit their college applications, there are scholarships, financial aid, and work study options to help pay for tuition and other school expenses. Depending on your situation and eligibility, you may receive money directly from the school or government to pay for expenses on a bi-annual or annual basis.
These options are not always guaranteed, but they are worth the effort. You can also work with your high school’s guidance counselor to see what else they recommend for financial assistance.
It is an investment of time and effort to fill out the paperwork for financial support to pay for education. However, should you receive these payments, they will save you money now and prevent accrued interest on loans you would have to pay later.
Start Saving Now for College
One way to start saving now is to take a look at your car insurance options. Do you know if your insurance plan will provide coverage when your child goes away to school? They may need a different plan, especially if they will be living in a dorm or apartment that is out-of-state. Before settling on a policy for your college-bound child, look at insurance companies that have satisfied customers. You can do this by checking for highly-rated reviews. Freeway Insurance Reviews are consistently rated highly, often with 5 stars. Check them out for affordable insurance.
College tuition and higher education costs have skyrocketed in recent years. Take action now and start saving by opening a 529 savings plan, setting up automatic banking transfers, and applying for scholarships and financial aid. When your kid can enjoy being a bulldog, wildcat, tiger, or a mountaineer without hefty student loan debt, everyone wins!