College expenses have climbed 5 to 8 percent per year. Despite the rising costs, around 80 percent of parents agree that college is an important investment. Yet half aren't saving.
Here are a few tips for saving for college.
- It's never too soon or too late to start saving.
- Maximize the investment. Choose a higher risk portfolio when children are young; switch to a more conservative investment as they near college age
- 529 savings plans can offer tax breaks
- Have contributions automatically deducted from your paycheck
- If you get a raise, increase amount of contribution
- If you get a tax return or inheritance, save a percentage to fund
- Review your savings plan annually
That's information worth knowing.
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