Did that school year fly by? Your kids are a year older and what does that mean? College is right around the corner. Lucky for you - today is National 529 College Savings Plan Day!
If you haven't started saving for college, it's easy to get started. The College Saving Plans Network is a great way to learn about plans across the nation by state or by feature. Another great resource is AC Online College Savings Guidebook.
Don't let the research slow you down, here are a few steps to get you started
- Use the Calculator
- Open an Account
- Start the Automatic Investments
I'm a little biased towards the Utah Education Savings Plan. They use Vanguard Mutual Funds which have some of the lowest fees out there. I signed up online in just minutes, about five minutes after my two-week old's social security number arrived in the mail. Then, the funds can grow both federal- and income-tax free.
Don't think you have any "extra" funds to put into savings? Why not invite Grandma or Grandpa or Aunt Tessa to make an initial deposit? The sooner you start, the more time you have to save.
Note: These opinions are my own and I should probably also all the typical stuff about investing - Carefully consider all investment objectives, risks, charges, and expenses before investing. Savings Plans are not FDIC insured. Investments may lose value, et cetera. Basically, read your fine print on whatever plan you consider.