When to Start Saving for College?

When to Start Saving for College?:

The question of When to start saving for college is simply answered: the earlier the better! But “the

earlier the better” isn’t always in the cards financially, or maybe you have several children and you’re

trying to sort out how to best place your resources, so what to do? Clearly you want to do whatever it

takes to ensure that they have the best shot possible when entering adulthood, but college costs are on

the rise and managing finances is tricky.

Knowing when (and how) to start saving for college is essential, so take a few moments out of your day

to read this article and learn more about setting yourself up for success in preparing your children for

their future!

Let’s first acknowledge that a simple savings plan probably isn’t going to cut it since two primary threats

to traditional savings accounts for college tuition are the pithy rates of return on your money and the

fact that college tuition itself is a moving target... on an increasing scale. The play here isn’t simply to

set up a separate savings account, success in this endeavor requires Strategy.

Now most parents in your same situation begin looking at the standard issue 529 Plan, where they can

save money without paying tax and without penalty as long as when you do access funds it’s for the

purpose of funding college. But what if your kid chooses an alternative training program, opts out of

attending college or drops out of school altogether? What if, in the worst case scenario, you find

yourself dipping into the account for a non-qualified expenditure? In this case, the funds accessed

would be treated as income, subject to taxation + a 10% penalty. A 529 Plan is a step in the right

direction but, 529 Plans aren’t flexible and they fall short when life becomes unpredictable.

Thankfully, there’s a better way. Considering the rising costs of college, the realities of life, a child, or

children who opt out of attending traditional college or university and inflation, it’s important to plan for

the worst while hoping for the best. Team Higher Priorities helps parents and grandparents secure

accounts that provide liquidity, compounding interest with links to the things that inflate. These

accounts are also self-completing, in the worst case. Questions about how this type of account might

work for you? Click below to schedule time for a quick consult.

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