We can help you save for your child’s college fund, but convincing them to pick Alabama or Auburn? That’s a different story. No matter which school they choose, having a solid college savings plan can make higher education more affordable. Here are five smart strategies to help you build a strong financial foundation for your child’s future.

1. Start Early

The earlier you begin saving, the better. Thanks to compound interest, even small contributions over time can add up significantly. Setting up automatic transfers to a dedicated college savings account can make saving effortless.

2. Get Help

Scholarships and grants are free money—don’t leave them on the table! Encourage your child to apply for scholarships early and often. There are numerous awards available based on academics, extracurriculars, and even unique hobbies.

3. Save Windfalls

Whenever you receive extra money, like a tax refund, work bonus, or monetary gifts, consider putting a portion of it into your child’s college fund. These unexpected financial boosts can accelerate your savings without affecting your budget.

4. Maximize 529 Plans

A 529 college savings plan offers tax advantages that can help your money grow faster. Contributions grow tax-free, and withdrawals for qualified education expenses aren’t taxed. Some states even offer tax deductions or credits for contributions.

5. Invest Wisely

Beyond savings accounts, consider investing in assets like dividend-paying stocks or mutual funds. These investments can generate passive income that can be reinvested or set aside for tuition and other college expenses.

Want to create a personalized college savings strategy? Meet with a 22nd State Banker today to explore the best savings options for your family’s future!