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Saving Money for College

How To Save Money For College

According to College Board: average tuition fees + room and board fees:

  • Private nonprofit colleges – $42,419/year!
  • Public in-state colleges – $18,943/year!

So how do you start saving?

Start early!

Even small amounts make a difference.

Save $100 a month at 5% interest rate, in 18 years, you’ll have more than $35,000!

You can choose from various accounts

  • 529 Plans
    A plan to help families set aside funds for future college costs
  • Prepaid Plans
    A type of 529 account that allows families to purchase tuition at today’s prices and redeem it in the future
  • Coverdell Education Savings Account (ESA)
    Allows families to make an annual non-deductible contributions
  • Custodial Account
    Set up by an adult for the benefit of a minor
  • Roth IRA’s
    You pay taxes on money going into your account, but all future withdrawals are tax-free

Good Luck!

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