College provides students with opportunities to pursue further education and prepare for future careers. If you have a child, now is the right time to start learning about financial planning to create college savings for her future. This guide can help with the basics:
Create a College Account Early
It’s never too early to start saving for college! Your child might be too young to be thinking about college, but you can start saving now to ensure better opportunities for her in the future. Make a separate account specifically for your child’s college finances. This will help set that money aside and avoid using it by accident or in case of emergency. Starting early gives you time to make small deposits that really add up! When your child is ready to start looking at colleges, she’ll be able to focus on academics instead of the stress associated with finances.
Encourage Your Child to Get an After School Job
Whether you plan to finance your child’s education completely or partially, it’s a good idea to encourage her to get an after school job when she’s in high school. Working after school is a great way to make more money to put toward college. This will also help your child understand the importance of being a great employee. If your child works during high school, she’ll also have time to learn money management before college starts.
Consider a 529 Plan
Set up a meeting with a financial advisor to discuss a 529 plan for your child. This type of plan is designed to help people save and increase their money and is tax-free if used for academic pursuits. Your financial advisor will provide details about the 529 plan and how you and your child can contribute to it.
Financial Directions, LLC can help you learn more about saving for your child’s future. Our Tucson retirement planning and financial advising experts can answer your questions and help you find the right plan. Get started by contacting us at (520) 408-7777.
