How do I save money in college


Saving enough for college may seem impossible. But families like yours do it every day, and it's easy for you to start too.

This fall, millions of American students will be entering college for the first time. For many of them, their college journey began when loved ones began planning and saving to make the college dream a reality.

Just like you, these families had a lot of questions along the way. And that's why we're here to help you start planning your degree. It only takes 3 steps to get started today.

- Find the right type of account for your college savings.
- Choose investments for your account.
- Open the account online.

Here we go!

  • When it comes to saving for college, there are a lot of myths floating around. Which are true? What is wrong? We have the answers.

Only rich people can save for college.

Not correct. About half of all American families are currently saving for college. And you don't need a lot of money to get started. The most important thing you can do now is take the same first step that you did: open an account.

Scholarships or financial aid are paid for college.

Most likely wrong. You are unlikely to receive a full scholarship or financial assistance to cover all college expenses. Only a small percentage of students can pay all of the tuition fees, not to mention housing, books, and fees. (And, in case you're wondering, an even smaller number of students are paid for by college by winning the lottery).

I can start saving no matter how old my child is.

Right. It's never too late to save up for college. Now the more you save, the less you have to borrow. So if your kid is in high school, don't let that stop you.

I'll lose the money if I don't use it in college.

Not correct. Even if you save on an account specifically designed for college, you can still use the money for many business and vocational school expenses. Or, you can give the money to someone else (a qualified family member) to use for college or even graduate school. Even the least flexible account types will give you your money back for whatever reason without asking questions, although you may have to pay taxes or fines on any amount your account has earned (but not on your contributions). *

Right. It's easy to find out which type of account best suits your needs. We cannot help you with the question of which meal plan to choose.

I am missing out on funding when I save for college.

Not correct. The amount you saved for college or some other goal will have much less impact on your financial support than your total income. In other words, if your income is high enough, whether or not you went out of the way to save, you will be expected to pay at least some of your child's college bills

Ask? Don't raise your hand - just ask

How much will i need

It doesn't take much to get started, and the total amount you will save will depend on your family's goals and resources. You can think about it now, or as college approaches - but it probably isn't as much as you think it is.

How Much Do I Need to Know About Investing to Manage a College Account?

Some types of investments can be managed for you, such as B. 529 Plan Year Enrollment Options designed for almost any educational goal. But it's also good to have some basic investing knowledge - it's not difficult to learn, and it will help you save for any goal. We're going to teach you a few important things that you need to understand.

How should I balance saving for college with retirement and other goals?

There is a certain order in which you should approach financial goals. We spelled it out. Learn how saving for college should fit in with your other priorities

Am I going to lose this money if I don't use it in college?

Nope. Depending on whether you get tax breaks on your college savings, you may have to give away some of your earnings, but not all of the money saved. * Find out what happens when you end up not needing your savings

When is the best time to start saving for college?

The sooner you start saving for college, the better it is for you. The best time is now. See when to start saving

What is the Best Type of College Savings Account?

For most people, it's a 529 account, and here's why - tax breaks mean more money in your account and less to borrow. But you have options. Find out which account is right for your education savings goals

You plan to save money for your future, but how do you know if you are saving enough?

Use our college savings planner to see if you will have enough for college

Learn some smart tips on how to get your child ahead of college.

College savings for your grandchild (or niece or nephew or ...)

The David Wahlberg Finance Pool 529 Plan

Discover the many benefits of our world-class college savings plan. Learn more about the David Wahlberg Finance Pool 529 Plan

* If you've received a tax deduction on your contributions, your state may require you to repay it if you use the money on expenses that don't qualify. Some states also adjust the amount owed for inflation.

Any investment is subject to risk, including the possible loss of the money you have invested.