Why Save for College

Throughout American history, education has been the gateway to financial prosperity.  From GIs retuning after World War II to the children of families arriving at our shores over two centuries ago, education has been the American dream and the key to financial and social success.

Today in the face of a challenging economy, higher education is more important than ever.  It will prepare individuals to master the new technologies that will fuel the businesses of the future – energy, health care, and technology to name a few.

Not only is it important to encourage your child to discover, explore and dream, it is essential that parents are prepared for life beyond the nest – college. Below is a practical guide to help parents, family and friends plan and save for that special child in their life.

 

Parents

Children

Family & Friends

Newborn – Pre K

Research and compare 529 programs online

 

 

Talk to your financial advisor about 529 college savings plan

 

 

Talk to your family and friends about what they’re doing to save for college

 

 

Use online calculators to help establish goals and create your personal college savings plan

 

 

Open a 529 college savings account

 

 

Sign up for a 529 affinity program and link it to your account (make sure that your state allows you to do this)

 

Encourage family members and friends to contribute to your child’s 529 account. “Give the Gift of Education” during celebrations and holidays

 

 

Check your personal plan on an annual basis

 

 

Establish an automatic contribution plan for a checking or savings account to make contributing easy

 

 

For 529 plans with a state income tax deduction or other incentive make sure you take full advantage of this extra benefit

 

 

Grade School

Consider the steps for a Newborn – Pre K but recognize that you have less time to save so you need to adjust goals or contribution amounts

 

 

Review your personal 529 college savings plan and savings amounts to ensure it is on track to meet your college savings goals. Make adjustments as necessary

 

 

Introduce your child to money and savings

 

Middle School

Consider the steps for a Newborn – Pre K but recognize that you have less time to save so you need to adjust goals or contribution amounts

 

 

Encourage family members and friends to contribute to your child’s 529 account as a gift

 

Involve your child in the savings process by sharing with them quarterly statements and savings plans

 

Establish a Matching Gift Program with your child. For every dollar they put into their 529 account match it with the same or more

 

Sign up for a 529 affinity program (if offered by your state’s program)

 

Increase contributions to your 529 college savings account

 

 

High School

 

 

 

Review your personal 529 college savings plan and savings amounts to ensure it is on track to meet your college savings goals. Make adjustments as necessary. Involve your child as schools of interest become clearer

 

Encourage family members and friends to contribute to your child’s 529 account as a gift

 

Involve your child in the savings process by sharing with them quarterly statements and savings plans

 

Increase contributions to your 529 college savings account

 

Attend financial aid workshops to learn about different ways to pay for college

 

Research and apply for scholarships on line and at your local community organizations, churches, etc

 

Attend a college fair and/or visit college campuses