Best tip on saving for college? Start right now

ByJulie Wilson WABC logo
Tuesday, October 15, 2019
How to deal with the rising costs of college
How to make the most of your money when planning for college and when to start saving.

Parents, if you're worried about paying for your child's college education, here are a few tips to consider:

  • Consider a 529 plan. It's an investment that's offered through the state. It grows over time and is tax-free when it comes to qualifying education expenses. You don't have to choose the state you live in, you can pick a 529 plan in any state according to what best fits your needs."Every state has different 529 programs and they have different fees and expenses with them," said Alex Sutherland with Lifeplan Group.
  • Make sure your college-bound student is actively seeking out scholarships, which can add up
  • Explore which grants your student qualifies for.
  • If your child is considering a loan, make sure plenty of research is done on the terms and interest rates.
  • Critically analyze if the college your child is planning to attend is worth the payout in comparison to the desired degree. "Look at the cost of tuition versus the salary you're going to get," Sutherland said.
  • Sutherland says the best tip is to start saving as soon as possible.