JUMPSTARTING YOUR CHILD’S TUITION SAVINGS: HOW MUCH TO SAVE
You only want the best for your child – but how much does the best cost? Figuring out the amount of money to begin putting away for your child’s tuition can be tough. Yes, they will be able to contribute, but it doesn’t hurt to help them get the educational future they deserve. That’s why Axiom Bank offers some insight into early funding strategies for your child’s education today!
Get the 411 on the 529
Also known as Qualified Tuition Programs, 529 college plans are a great option to help begin saving for your little one’s future. You’re allowed to withdraw the funds tax-free for education expenses when you invest after-tax money into the plan. Know that each state is different when it comes to 529 plans, however, it’s a great vehicle to put future college money into.
According to the College Board, an in-state public college academic year can average at $9,410. This means you’ll want to start saving as soon as possible. Babies and children cost a lot of money, so finding funds to put away for college can be tricky. It may even be best to start saving for your child before they are born. That way, you don’t have additional child expenses to worry about while putting tuition money away! Starting at $100-200 a month can be a simple start – then you can build as you go!
LEAF is a way for friends and family to give money to your child for their education. When they gift you a cash card, you can redeem the gift by entering the number on the card, then transfer it to their 529 plan! This will help cover any type of college expense they may have in the coming years.
Get into the routine of having a certain amount deducted from your paycheck go straight to tuition. This will help you stick to your monthly savings goal instead of trying to put different amounts into an account. Automating your money management will help you begin to get used to living on a certain budget while continuing your deposits to the college fund.
Know What Comes First
When you decide to save for college tuition, remember that other bills won’t stop. Make sure your monthly savings goal isn’t outrageous. You know your income, so you know what budget is best. By making your home loans, debt and other payments first, you can decide the amount to put away for your child’s future.
We hope these ideas put you on the right path to furthering your child’s future success. If you’re looking to open a savings account to save for your baby’s education, give us a call! We’d be happy to discuss our different options with you!