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The Time to Start Saving for College is Now! 

September is National College Savings Month, the ideal time to begin a program for your children or maybe re-think your existing savings plan. A U.S. Congressional Resolution officially recognized September as College Savings Month in 2003.

The College Savings Plans Network has been joined by more than 40 states in declaring September College Savings Month. A tax-free Section 529 plan makes it easy and affordable for the average family to plan ahead for the cost of college attendance and is available in 49 states and the District of Columbia. Many activities are held across the nation during September to recognize the importance of saving for college.

It is very important to start saving for education as soon as possible, even as early as the day the child is born. Time is a valuable asset—the sooner you start saving, the more time your money has to grow.

When you consider the rapidly rising costs of a college education, you’ll quickly consider the prospects and start saving. Here are some stunning, but true statistics:

·         Children born today will face college costs that are 3 to 4 times the current prices by the time they enroll in college

·         Parents should expect to pay at least 1/2 to 2/3 of their children's college costs through a combination of savings, current income and loans

·         If a savings plan is started early enough, even a modest weekly or monthly investment can grow to a significant college fund by the time the child enrolls

·         It is less expensive to save for college than to borrow, either way, you're setting aside a portion of your income to pay for college

·         When you save, the money earns interest, while when you borrow, you're paying the interest

Even if college is just a year or two away, it is never too late to start saving—there are tax benefits to saving in a Section 529 college savings plan or prepaid tuition plan, and every dollar you save is a dollar less you'll need to borrow.

What are you doing to save for your child’s college education?