4 Keys to Saving for Your Child’s College Education
How to Save for College for Your Child
Saving for your child’s education can feel like a daunting and overwhelming task, especially when you factor in all the other funds you’re trying to save for! Between an emergency savings fund, a retirement fund and more, it can be difficult to know how to fit college savings in the mix.
When making a plan for your child’s future education, here are a few things to keep in mind:
Plan for Retirement First
Saving for your child’s education is important, but don’t do so before making a plan and saving adequate funds for your retirement. Loans are available for your child’s college, but no loans are available for retirement. Don’t put off or minimize retirement savings in order to put your child’s tuition first.
Be Clear on Your Values
Know what you’ll offer your child – will you be willing to fund half, the amount of public college tuition, the full amount wherever they choose to go? Being clear on those items from the start will prevent confusion in the future.
The Earlier the Better
Start saving earlier rather than later. Make a plan for your budget, for your retirement savings, then start funding an educational savings account.
Open a Coverdell Savings Account
While you still pay taxes on your contributions, withdrawals are made tax-free. You can contribute up to $2,000 per year between the time your child is in Kindergarten and the 12th grade.
Here at Signet, we value your family’s well-being and personal success. Set your child up for a lifetime of success by opening up a Coverdell Savings Account today!