Saving for College

Your child’s college tuition is one of the biggest investments you will ever make. Millions of Americans often splurge on luxury items (boats, cars, rvs, pools, etc..), take children on expensive vacations, and purchase the latest video game system, but often don’t think ahead to the expense of college.

Fortunately, if you have a desire to save for your child’s future college expenses you now has more options than ever before. Traditional savings options include savings accounts, taxable investment accounts, annuities, and U.S. Savings Bonds. You may also save for college using 529 college savings programs, 529 prepaid tuition programs, and Coverdell education savings accounts.

Start Early, Start Small

Can you afford $50.00 a month? If you invest $50.00 a month over an 18 year period, by the time your child attends college you will have saved over $17,000.00 if your savings earns just 5.0% interest (compounded monthly). Now add birthday and Christmas money from grandparents and aunts and uncles and you could easily reach your savings goal. Remember that any amount can make a big difference. Plus, you may be able to save more later — for example, if your family income goes up.

To Learn More or Calculate Your College Savings Goal:

Saving for College

AZ Family College Savings Plan

Finaid's College Saving Checklist

College Board - Paying for College

Locate Your States College Savings Plan