We all want to be able to help our children out when it comes to furthering their education, however, with your own debt and bills to pay, how can you save for your children’s future? In today’s blog, we want to give a couple quick and simple ways to begin building your child’s college fund. It can be just a start, but at least it’s a step in the right direction.

529 Plans

One option is a 529 college savings plan, also known as Qualified Tuition Programs (QTP). The Simple Dollar states, “Here’s how they work: You typically invest after-tax money into the plan, and you’re then allowed to withdraw the funds (and any investment gains) tax-free for use toward qualified education expenses, such as college tuition and books.” 

Family Contributions

Instead of having grandma and grandpa buy toys and clothes for 18 birthdays, have them give some money to go towards a college fund! You could have them give cash to put in a savings account. Your child will be very grateful later in life to know that some of their presents were money put into a college fund.

Savings Account

Opening a simple savings account for your child’s future is also a possibility. This way, you know that any money in that account is strictly for college, and not in a place where they can pull out money for other reasons. You, your child and family can continue to add to this savings account over the years. Once it’s time for college, you will have hopefully compiled enough over the years to give your kid a nice jumpstart on tuition.

Traditional or Roth IRA

Even though an IRA is typically used for retirement, they are also a very practical option for education expenses! If you’re under 59½, you can still take money out to pay for qualified higher education expenses, such as tuition, fees and books, without paying the 10% penalty that would normally apply, if you’ve had and contributed to the account for at least five years. The expenses can be for you, a spouse, child or grandchild.

Scholarships

While you can’t apply for scholarships when they are a baby, be sure to keep an eye on your options as they grow up. There are plenty of different places to apply for scholarships, not just through the school. Many people out there have set up funds to be in memory of a loved one and other instances like that. Doing a quick Google search for potential scholarships will show you other sites offering scholarships as well!

Hopefully these suggestions get your mind thinking about your child’s future. There are so many options to safely store those savings and help them grow throughout the years. If you’re interested in setting up an account with us, contact us today!