September 1, 2022
Categories: Checking Accounts, Credit Cards, Debit Card, Education, Financial Planning, Financial Wellness, Financials 101, Protecting Your Accounts, Safety & Security, Savings Accounts
By Dawn Kellogg
It’s September. The scent of autumn is in the air and the kids are back at school. It’s also National College Savings Month – a time to recognize the importance of saving early and often when planning for your child’s education.
Helpful Tips for Saving
Open an account when your child is born – Family and friends can make contributions over time on birthdays, holidays, and special occasions. Time will be on your side!
Make a Habit Out of Saving – Automatically deposit money into the account each pay period so that you don’t even have to think about it.
Your Kids can Save Too – When your child is old enough for their first part time job, have them put a portion of their earnings into the account. This way, when the time comes to use it, they will feel invested as well.
There are a number of options that you have when saving for college and it’s worth doing your homework to see which one is right for you.
College Savings Options
Savings Accounts are a great way to start putting money aside specifically for your child’s higher education expenses. You can have a certain amount directly deposited into a specialized account and add more when landmarks like birthdays, bar mitzvahs, and holidays roll around.
529 College Savings Plans are one of the most popular funding options available. The investor can use the value of the account at private or public colleges and universities nationwide. Click here for more information on enrolling in the New York State 529 College Savings Plan.
Prepaid Tuition Plans allow you to pre-pay for college costs today, which helps against the inflationary risk associated with rising college tuition rates. The state bears the investment risk. This is currently not offered in New York State, but states such as Florida, Maryland, Massachusetts, Pennsylvania, Texas, and Washington do offer this.
By saving early (and regularly), you can take away the worry of how to fund your child’s future education.
We’re here to help. Ask one of our Member Service Representatives on how you can start saving today!
Dawn Kellogg is the Public Relations and Community Engagement Specialist for The Summit Federal Credit Union.