National College Savings Month
September 2020
September is National College Savings Month, and we at Ascension Credit Union want to help you save for your students' college tuition. College tuition prices seem very intimidating, but if you follow these five easy steps, your student will be all set for their college years.
Learn college costs
The first step is to research how much the average university costs. The average cost for a four year university is constantly changing, so familiarizing yourself with how much it may cost will help you to know exactly how much you should be saving. When doing your research, it is always important to not only look at the tuition cost, but at the cost of books and supplies, meal plans, housing, and any other fees your student might come across along the way. Most colleges will group all of these together to give a more exact total, but it is important to know the individual prices and what your money will be spent on.
Use your time wisely
There is no time like the present, especially when it comes to saving money. No matter the age of your student, it is always best to start saving right away. The earlier you start putting money aside for your student, the easier it will be to get to your goal amount.
Research savings plans
There are several different college savings plans for you to choose from. A 529 savings plan, when used for qualified higher educational expenses, allows the funds contributed to it to grow tax-free. There are two main types of 529 plans which are prepaid plans and savings plans. A prepaid plan locks in the price of future college costs and can be added to on a monthly basis or as a one-time payment. A savings plan helps you to save for a variety of different college costs, and it is up to you whenever you want to add to it.
Develop better spending habits
An important part of saving money is becoming aware of your own spending habits. Keeping track of expenses and prioritizing what your money is spent on are great habits to form when it comes to saving. A monthly budget may seem like a lot of work, but with that, you will know exactly where your money is going.
