Start a college savings plan for as little as $15.
Give your child the gift of a college education.
A college education can mean a better future for your child. But college is expensive and is becoming more so every year. In fact, in 2028 a four-year private education could cost $300,000 or more.1 The figures may seem daunting, but the good news is that planning ahead and saving now can put the college of their choice within their reach and your budget.
Whether your child is still toddling around the house or already eyeing the keys to your car, every little bit will help him or her go to college. While there are many ways to pay for college, including student loans, scholarships, grants and work-study, a popular, easy way is to fund a 529 college savings plan. You can add as little as $15 with a deposit or have a set amount taken out of your paycheck each time so it’s an expected part of your monthly budget. Plus, anyone can add to your child’s account. Grandparents, friends and even some purchases can help your money grow.
College Savings Plans At A Glance
- State-sponsored plans (every state has one) help you save for tuition, books and more.
- Money can be used at most accredited colleges, universities or technical schools.
- You keep control of the account even after your child turns 18.
Get to know how college savings plans work.
- State-sponsored: Most college savings plans are state-sponsored programs that help you save for college. Through the plan, your money is invested into various options to help it grow with interest. Every state has at least one plan, with many states offering a variety of options. Investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available with an investment in the home state’s plan.
- Professionally managed: Each state chooses an investment company to professionally manage its plan, but you can participate in any state’s plan.
- Tax-advantaged: Your money grows tax free, meaning you don’t pay tax on the interest it earns.
- Flexible use: You can transfer money not used by one child to another child or to yourself, without penalty, to pay for college expenses. You can also choose a school in a state other than your plan state. For example, you can live in Pennsylvania, enroll in a plan in Minnesota and use the funds for a school in Nevada.