It’s 529 Day! Every year on 5/29 many 529 plans offer up special deals to help celebrate the holiday while others raise awareness about 529 plans and their benefits. In honor of the holiday we’re sharing tips and an infographic from Fidelity.
I recommend college savings come AFTER retirement savings, and while college costs can seem overwhelming save what you can even if it’s just a little bit each month.
5 College Savings Tips
1. Do your homework.
Understand available savings options and their benefits. A 529 plan is a tax-advantaged dedicated college savings account that can be used for tuition, books and other education-related expenses at most accredited two- and four-year colleges and universities.
2. Open a 529 plan early.
You can do this even before your child arrives by opening the account in your own name. Start saving now and change the beneficiary name later.
3. Expand your registry.
Ask friends and family to contribute to college savings – a gift the child will not outgrow in a few months. Plus, the gift of a college education will last a lifetime!
4. Make gifting social.
Fidelity offers an online 529 gifting service, allowing account holders to add a link to a personalized gifting page to share by email, social media, or even in a birth announcement e-card, or invites for baby showers or birthday parties.
5. Put your spending to work.
Cash-back credit cards are extremely popular. Earmark money earned through cash-back credit card rewards programs for college savings and see how everyday spending can boost college savings.
Regardless of your child(ren)’s age start saving now.
Kelly
Infographic provided by Fidelity. To learn more on how to start saving for college, visit go.fidelity.com/saveearly and www.fidelity.com/college.
[1] Centers for Disease Control and Prevention, Births: Final Data for 2013, January 2015
Andrea Updyke says
Great information! We have finally started putting things in place. It’s never too early or too late to do something!
Absolutely! There’s no ‘wrong’ time to start.