Making the decision to save for college is best made as early as possible. The longer you save the more money saved over time. Because a decision to save is not made early on, does not mean you should not start now. Just like with most things in life, it’s never too late to start saving for college.
Parents and grandparents as well as the student can all come together in a variety of ways to contribute towards financing educational goals. Let’s look at a few ways to make that dream a reality.
- 529 Plans – These are state run investment accounts designed specifically for saving for college. Plans come with special tax benefits and can be used at colleges nationwide.
- Coverdell Education Savings Account (ESA) – This is another investment account that has a $2000 annual saving limit per child. Savings grow and are withdrawn tax-free and can only be used for college.
- Gradsave – This is a college saving registry. Family and friends can make online financial contributions to Gradsave for the student’s birthday or for Christmas instead of just buying toys or clothes as gifts.
- Part-time work on behalf of the student - The student can work part-time in the summer and save a portion of the money earned for college.
- Tax credits and deductions- Accurate records are golden. Used to secure tax breaks in the form of education tax credits and deductions, the benefits are virtually equal to receiving grant monies.
Now that you have explored a variety of ways to build a nest egg for college, start today by visiting savingforcollege.com for more details.