Almost every parent has dreams and hopes that their children will attend college. And while every child may not do this, it’s still something that we can hope for. Following in the footsteps, somewhat, of family members; I have at least obtained my associates degree. Eventually I’d like to get my Bachelor’s degree and possibly my Master’s degree. In the meantime, we also want to start saving for college on a budget so Squeaker has something to help her out. With thanks to NY529 Direct for sponsoring this conversation, we’re sharing a few tips.
While we may encourage her to pursue all forms of scholarship and grant money, we are also going to do whatever we can to help. And that includes starting a college fund.
There are a variety of ways to begin saving and there are some great options available.
How to Start Saving for College on a Budget
One plan worth investigating is the 529 College Saving Plan. The 529 College Savings Plan is designed with all the information you need to make a real difference in your college savings endeavors.
There are real examples to help you choose the right path and not be taken for granted brokers just looking to pad their commissions. You will find out about Federal and State Taxes and their advantages and disadvantages. Many brokers may not know about all college plans and you should have as much information at your disposal as possible.
It is easy to read and easier to understand, you will find it laid out in an easy to use format.
You will find answers to many questions such as, if you move does your state college fun go with you? Or what happens when the child doesn’t want to go to college anymore?
These two questions are asked by many a parent and knowing the answer can help.
No matter if your child is in Pre-K or High school knowing the facts and saving makes a difference. You could even start the fund for your child when they’re still young.
You can look into Savings Plans, which can be started by the parents but also the students, family and even friends. You can learn about this at Ugift.
The 529 College Savings Plan can be used no matter the age and the beneficiary of the savings plan can attend college in any state.
Next is the Prepaid Tuition Plan, using the 529 College Savings Plan you can manipulate these into different states and for Semesters or Quarters. You can also go with Scholarships, Grants, Loans, and Other Financial Aid Options; these are determined by your family status and your child’s grades.
There is also the FAFSA: Free Application for Federal Student Aid, which is provided by the U.S. Government.
You and your family will not know if you are approved until you try, so even if you do not think your child be accepted, apply anyway. The 529 College Savings Plan breaks this down for you and helps to explain the reasons behind it.
The 529 College Savings Plan helps you understand your rights and also how to utilize what is available to your advantage.
What is a 529 College Savings Plan?
To sum up, the 529 College Savings plan is an investment account that can be used for higher-education. The account can be used to pay for qualified expenses at any eligible education institution.
Expenses include:
- tuition
- books
- supplies
- equipment
- certain room and board fees
It’s never too early or too late and it could be fun to have your child contribute part of their own savings. They don’t have to of course! We are looking forward to seeing how our new NY529 Savings account will grow. It was super easy to set up, and thanks to direct deposit, we can make regular contributions for her.
Be sure to check in with our journey later in the year to see how much we’ve saved. And if you have any questions about setting up your own account, let me know!
Before you invest, of course, consider the tax benefits and risks. Sometimes there are benefits that are only available for the investment into the 529 plan.
For more information about New York State’s 529 program, visit: www.nysaves.org or call 1-877-NYSAVES
Kori
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I often worry about paying for college for my child. I mean I am not completely poor, but if he gets into an ivy league I may have to start selling body parts! Thank you for such useful information! My little one is only 4 so college is still far off (thank god), but it’s never to early to start actively planning on how to pay for it!
I hear that! My youngest just turned 3 and while we aren’t struggling financially, it would be great to have one less thing to worry about!