If you want to save up for college, it is important that you know what your options are. There are numerous ways to save up for a college education and the more you know the better. These days, the cost of tuition is pretty high and it’s only going to get worse. When you know how to effectively save up enough money for you or your children to go to college, you shouldn’t have any issues.
The following is a list of ways that can make saving for college much easier. By following these tips, you will be able to meet your savings goals faster than you ever thought possible.
Open up a Savings Account
You will first want to make a point of opening up a savings account at a bank. There are many reputable banks that offer multiple savings account options, including places like BB&T who offer discounts and amenities for specific account types such as student accounts. Take the time to look into some of the BB&T bank savings account options you have, so that you can choose the right one to match your needs. You should also put in as much money as possible from each paycheck so you can meet your goal sooner rather than later. A college saver CD is a great option, and all of the earnings are FDIC insured.
529 Plans
A 529 is essentially something that you put money into specifically for college. You will quickly find that there are a number of these plans to choose from, so you will need to know what your options are. Make sure that you do your research before signing up for a 529 plan so that you can get the most out of it. This is one of the more effective ways to save up money for college. Each type of 529 plan is different in its own way, so you will need to get this information before making a final decision.
Roth IRAs
If you want to save money for your child to go to college when they are old enough, you might want to think about opening up a Roth IRA in their name. You can put money into it on a regular basis and your child will be able to use it to pay for their college education when they turn 18. Keep in mind that there are penalties for early withdrawal associated with Roth IRAs.
Brokerage Accounts
You always have the option of using a brokerage account to save money for college, whether it is for yourself or your child. You will be able to open one of these accounts through a broker for a fee. The options you have will depend entirely on the company that you select.
There are numerous ways to save for college, but you will want to look for the option that best matches your needs. When you actually take the time to get this information, you should be able to save up the money you need very efficiently.
