5 Ways to Save for College
Unfortunately, the cost of college keeps rising every year. The good news is that there are many things you can do to start saving for college or your child’s education.
Here are ten specific tips you can use to save for college right away.
1. Start saving today
The sooner you start the more time you have to earn interest on your money. It’s important to start today - every day that you delay is money lost.
2. Invest in a 529 college plan
These investment plans are state sponsored college saving plans. These 529 plans are overseen by a state appointed plan manager, similar to a mutual fund manager, that invests the funds into stocks, bonds, and other funds. These 529 plans grow tax-deferred, so your money grows at a faster rate. Anyone can fund a 529 plan and the plan can be used for almost any college expense.
3. Start researching scholarships
There is a scholarship out there for everyone. Plan ahead and research scholarships in advance. When the time comes, apply for every scholarship possible. Even small scholarships start to add up.
4. Fund a Coverall Education Savings Account
These accounts used to be called Educational IRAs. Anyone can deposit up to 2,000 annually into this savings account. All interest earned on this account is tax free as long as the account is used to pay for college expenses.
5. Utilize prepaid tuition plans
If you plan on attending or sending your child to a college with a prepaid tuition plan, it makes sense to utilize these plans to the max. This way you can put aside money ahead of time.