Thrifty Thinking: Jump Start College Savings Plans

The New Year is officially underway, which means New Year’s resolutions are in full swing. Yet while you may be hitting the gym more or eating healthier, can you say your finances are in shape?

Students in the class of 2013 graduated with an average of $35,200 in college-related debt. With the challenges and costs of paying for higher education growing, saving now can have big impacts later.

The College Savings Plans Network (CSPN) has some saving tips to help you jumpstart your college savings plan and ensure it is financially fit for 2014:

• Inspiration to start: Children with a college savings account are six times more likely to attend a four-year college compared to children with no dedicated college savings account. In addition, according to the U.S. Census Bureau, college graduates earn an average of $1 million more than high school graduates during their careers.
• Define your savings goals: The first step is to determine how much you ultimately want to save for your child's education. Do you want to save for tuition only or include room and board? All four years of college or just two? Public or private? You can use a college cost calculator to forecast what the estimated cost of college will be when your child is ready to enroll.
• Start early and save often: Start saving as early as possible - you can even open an account before you have children. You’ll be able to put away a smaller amount and will have more time for your money to grow. It’s never too late to start, but the later you do, the less time you have to build your funds. 
• Find Your Fit: Nearly every state offers a 529 plan, but you don’t have to go with your state’s plan if it isn’t the best fit for you. You can compare 529 plans by feature and by state.