How to Start Saving for Your Child’s College Education
It’s never too early to start saving for your child’s education. There are many ways to save, so visit the financial advisors at your credit union and explore these great tips to get started today:
- Look at Tuition Rates
Although tuition rates can fluctuate greatly before your child is ready to attend school, peruse a few college websites to get an idea of current tuition rates and financial aid packages. Speak to a financial advisor at your credit union to find out how much you can be expected to pay when your child goes to college. This can help you decide how much to invest—and for how long—to get the most benefit for your money.
- Consider a CD
There are a number of savings plans you can invest your money into in order to let it grow by earning interest. Credit unions offer options such as CDs to invest your money safely and reliably for withdrawal later—the rewards can be greater if you’re willing to let them mature for many years. Getting an early start on your child’s education fund will ensure that you can commit your money in a way that offers the greatest return on investment.
- Check Out a 529 Plan
Every state operates at least one type of 529 plan, which allows you to invest money for your child’s college education tax-free. You can choose how the money in the account is invested and how it will be taxed in order to maximize the benefits of your financial contribution. Some states also have a variation of the 529 plan called a prepaid tuition program, which allows you to utilize current tuition rates by locking them in for equivalent credit in the future.
Prepare for your child’s college education today by investing with GCS Credit Union of O’Fallon, IL. We offer services such as savings accounts and CDs to maximize the growth of your investment for your child’s future. To learn more, visit our website or call (618) 797-7993 today.