Thanks to Farther Finance for sponsoring this post. All opinions are my own.
Setting up a college savings account can be done in under 15 minutes and is a great way to prepare for the future. These tips on setting up a college saving account is a great way to minimize college loans.
I have time for that later. It’s too hard. I don’t have the funds right now.
These are all common excuses we’ve probably all said when it comes to setting up a college fund for our kids.
I get it. We all busy and it does mean one more thing that comes out of the bank account.
But setting up the account is simple and can be done in under 15 minutes through Farther Financial. Putting in a small amount per month adds up quickly.
Farther Finance is a wealth management platform where you can start taking control of your money in under 10 minutes. You will get access to an expert financial advisor, and our proprietary technology will move your money where it needs to go to squeeze more out of your hard-earned dollars and reduce your tax bill.
You’ll certainly be glad you have the account once you get that first tuition bill!
Tips on setting up a college saving account
Saving into a 529 plan allows you to put your money into an account that grows tax-free just like a retirement account. This is a great way to save up for college without incurring extra taxes.
Farther is a holistic approach to wealth management, giving people like us the ability to get our money going Farther. Whether that’s reducing our taxes or getting our kids set up with college savings accounts.
Having automatic payments set up makes the process seamless. It’s a one-time setup and you don’t have to remember transferring funds monthly.
That $50 a month deposit has compound growth, so by the time they go to college, you will have already saved $10,000. So the more you invest now, the more it grows and the interest accumulates.
How it Works
Think of 529 College Savings Accounts like a retirement account for a college education.
You invest with after-tax money, and it grows tax-deferred. Then it’s all tax-free at the end if you use it for college expenses at any qualified educational institution, including vocational schools.
Give your kids a head start
Having a college degree can give your kids an added boost in the job market. But having them walk away with a degree and be debt-free is the real advantage.
Not having student loans will allow them to have the freedom and flexibility to decide where they live after college and what job they take.