My oldest daughter started high school this fall. I’m not sure how the time flew by so quickly, I remember like it was yesterday being pregnant with her. Now in 3 and a half years she wants to leave our nest for college and how exactly will that happen. I have to be honest and say, no we do not have a dedicated college fund for her at this moment in time. We’ve put it off and now we’re so close it really scares us. In this difficult economy, as college tuition continues to rise at an alarming rate, it is increasingly crucial for us and every family to start planning and saving for their children’s college education if they haven’t already done so.
Enter ScholarShare, a 529 college savings plan that can give you some peace of mind about your children’s futures at a minimum contribution of $25 per month! I had an opportunity to meet with some fantastic people with ScholarShare and TIAA-CREF (ScholarShare’s finance managers) to learn more about their program and basically how it all works!
A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. This money can be used to meet costs of qualified colleges nationwide. Plans work much like a 401K or IRA by investing your contributions in mutual funds or similar investments.
Some highlights and eye-openers from the night:
–Children with a savings account are 7x more likely to attend college just by talking about it and setting expectations.
–Starting to save early works, the results indicate. California parents who have been saving more than 10 years have set aside an average of $25,193. That compares to $14,733 for those saving 6-10 years and $4,663 for those saving five years or less. Source: ScholarShare California Statewide Survey, 2012
–The new ScholarShare plan significantly reduces fees, expands the investment lineup, and offers online and mobile tools to make California’s 529 plan more accessible and easier to manage. Under the revamped plan, fees will be reduced by approximately 30 percent, making ScholarShare one of the lowest cost 529 plans in the country.
–Savings in a 529 plan have very minimal effect on your child’s financial aid package and opportunities for scholarships.
–Monies saved can be used for private or public colleges or universities, in-state or out-of-state, trade or graduate school, funds in the account may be used at any eligible higher educational institution in the nation and many abroad.
–For the on-the-go customer, ScholarShare launched a series of mobile-friendly services, including a mobile site with full account management capabilities and a mobile app called College Savings Planner, that allows customers to keep track of their college savings goals and plan to help meet them.
–Money can be taken directly from your paycheck every month!
Bottom Line: The More You Save, the Less You Have to Borrow!
ScholarShare is such a smart plan, for about the cost of a half dozen coffees or iTunes songs per month, you can be on your way to financing your child’s education!
Give the Gift
The Holiday Season is the best time to give the gift of a College Education! ScholarShare 529 College Savings Plans makes it easier than ever for parents, grandparents, aunts and uncles to melt their financial stress away with a quick and simple gift that is sure to be used years after you give it – the gift of a college education.
Check out the “Give a Gift” option on the website, www.Scholarshare.com, any gift giver can open an account for children of all ages for as little as $25. And if your favorite loved one is already on the path to college with ScholarShare, you can contribute to an existing account with the “Gift of Education Certificate,” allowing for a personal message to be included for the beneficiary.
What are you willing to give up for $25 a month?
I attended a dinner with ScholarShare and TIAA-CREF, meal and compensation were given. All opinions are my own.
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