Building a college savings plan


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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