In this two-part series dedicated to college/post-secondary education
You can begin saving into a qualified college education savings plan as soon as your child is born. Qualified college education savings plans allow you to save
The key is to begin saving as early as possible. You want to allow time to work for you considering most college savings plans utilize investment vehicles that can fluctuate in value depending upon how you invest the money within the account. Time is your friend when it comes to investing.
As an example of how time in investing may help, consider that if you invested $500 up front when your child is born then $100 per month through age 18 at 8% interest, you’d have $46,938.30 at age 18. If you didn’t start investing until your child is 7 years old and follow the same plan of $500
The following link will provide you with the 529 college savings plans available through the state of Virginia. Please note, you can purchase plans through states other than your state of residency but there may be tax implications to consider.
It’s important to have a strong plan in place and consider not only the future education expenses of your child but also your needs, wants, and wishes. A comprehensive plan is extremely important to ensure all aspects of financial planning are taken into consideration when setting out on your life journey.