Ways to Save for College
It’s no secret that attending college is a must if you want a competitive edge. Another well-known fact is that college isn’t cheap and it isn’t easy.
Getting into college takes hard work and dedication. Paying for college is the same way. Without time and proper planning, paying for college can seem like a daunting task but it doesn’t have to be. If scholarships and loans aren’t an option, we’ll show you what are the best ways to save for college.
There are many ways to save from starting early and slowly saving up to working hard and saving quickly. Then, you have to decide if you want to save alone or if you want to get the government involved through something like a 529 plan.
According to College Savings Plans Network (CSPN), a 529 plan is a “tax-advantaged investment plan designed to encourage saving for the future higher education expenses of a designated beneficiary.
There are two different kinds of 529 plans:
Prepaid tuition plans (a.k.a. guaranteed savings plans)- These plans are available in 13 states and allow you to pre-purchase tuition based on the current rates. The tuition is then used when the beneficiary is in college.
Savings plans- These plans are available through your state and are based on the market performance of whatever investment you’re interested in (i.e. mutual funds.)
These government-investment savings plans are best for the long term. If you’re looking to save for college quickly, there are other ways of doing so.
Sometimes continuing education isn’t planned since childhood. This doesn’t mean that it’s impossible.