College funding starts with college savings.  A college education is one of the most important investments you and your child can make in his or her future success.  That’s why 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.

If you start saving early enough, even a modest weekly or monthly investment can grow to a significant college fund by the time the child attends college. For example, saving $50 a month from birth would yield about $20,000 by the time the child turns 17, assuming a 7% return on investment. Saving $200 a month would yield almost $80,000.

Investment Strategies

  • Start early and save regularly
  • Begin aggressive and switch to a more conservative strategy as college approaches
  • Evaluate investment vehicles carefully
  • Reevaluate your investments once a year
  • Diversify your investments
  • Save in the parent’s name, not the child’s name
  • Save in tax advantaged savings vehicles


Savings Tips

  • Save as much as you can
  • Set up payroll or checking account deductions
  • Establish a goal
  • Invest windfalls
  • Increase savings amounts each year
  • Ask relatives to help
  • Redirect old debts toward savings goals
  • Teach your children about saving and investing
  • Review budget and spending habits