Saving for College

According to the Bureau of Labor Statistics, the tuition component of the Consumer Price Index (CPI) increased by 8% per year, on average, from 1979 to 2001. This means that children born today will face college costs that are 3 to 4 times current prices by the time they matriculate.

It is very important that parents start saving for their children’s education as soon as possible, even as early as the day the child is born. Time is one of your most valuable assets. The sooner you start saving for college, the more time your money will have to grow.

Investments to help you reach your goals:

529 Plan

A tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary. 529 college savings plans offer tax advantages, high contribution limits, and investment flexibility.

Coverdell Education Savings Account

Perfect for individuals within the income limits who want to set aside dollars on a tax-advantaged basis for education expenses.

Custodial Accounts

Ideal for investors wishing to make a gift, in the form of securities or cash, to a minor.