COLLEGE SAVINGS 101

Savingforcollege.com

It's that time of year again - the 40-Day College Savings Challenge
http://www.savingforcollege.com/articles/its-that-time-of-year-again-the-40-day-college-savings-challenge-725

Posted: 2015-02-18

by Kathryn Flynn

Last year, we challenged our readers to a 40-Day College Savings Challenge during the fasting season of Lent. No matter what your religion, the 40 days leading up to the Easter holiday can be the perfect time to evaluate your spending habits and try to find room in your budget for college savings. This challenge can be the motivation you need to get started, or a great way to boost your current savings. If you fell short on your New Yearís resolution to start saving for college, it can also be a way to redeem yourself!

If youíre not sure how much you need to save, try the College Savings Planner. Even if you have a general idea about how much tuition costs, do you know how much of that cost is typically covered by grants and scholarships versus what is paid out of pocket? If youíre planning to save with a 529 plan, do you know if your state offers a tax deduction on contributions and how much itís really worth? The College Savings Planner will help answer questions like these and also provide details on specific 529 plans that can suit your needs.

Here are the steps to get started with the challenge. Be sure to keep us posted on how itís going!

  1. During the next 40 days, be sure to keep track of every dollar you save
  2. Open a 529 college savings plan
  3. Use the total amount of money saved as your initial deposit
  4. Determine a realistic monthly contribution based on this amount
  5. Set up automatic deposits from your checking or savings account
  6. Sit back and watch your earnings grow tax-free!

10 reasons why we love 529 plans

Last year, we challenged our readers to a 40-Day College Savings Challenge during the fasting season of Lent. No matter what your religion, the 40 days leading up to the Easter holiday can be the perfect time to evaluate your spending habits and try to find room in your budget for college savings. This challenge can be the motivation you need to get started, or a great way to boost your current savings. If you fell short on your New Yearís resolution to start saving for college, it can also be a way to redeem yourself!

If youíre not sure how much you need to save, try the College Savings Planner. Even if you have a general idea about how much tuition costs, do you know how much of that cost is typically covered by grants and scholarships versus what is paid out of pocket? If youíre planning to save with a 529 plan, do you know if your state offers a tax deduction on contributions and how much itís really worth? The College Savings Planner will help answer questions like these and also provide details on specific 529 plans that can suit your needs.

Here are the steps to get started with the challenge. Be sure to keep us posted on how itís going!

  1. During the next 40 days, be sure to keep track of every dollar you save
  2. Open a 529 college savings plan
  3. Use the total amount of money saved as your initial deposit
  4. Determine a realistic monthly contribution based on this amount
  5. Set up automatic deposits from your checking or savings account
  6. Sit back and watch your earnings grow tax-free!

10 reasons why we love 529 plans

 

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