September is College Savings Month
September is not just about back to school; it’s also College Savings Month! If you still need to start saving for post-high school education, this is an ideal moment to reflect on the importance of saving and investing in your kids’ or grandkids’ education.
As higher education costs continue to rise, preparing for these expenses early can make a significant difference. This designated time allows you to explore various savings options, set financial goals, and ensure a brighter future for your children or grandchildren.
When is College Savings Month 2024?
College Savings Month is celebrated every September. In 2024, it will be a month-long event dedicated to encouraging families to focus on saving for college. This period contains information, resources, and activities to help you understand and optimize your college savings strategies.
History of College Savings Month
The initiative to designate a month for college savings awareness to address the growing financial challenges families face when planning for higher education.
In 2003, the U.S. Congress declared September College Savings Month. This national initiative aimed to encourage families to think about and save for college.
“Financial institutions, government bodies, and educational organizations have come together to promote the benefits of early and consistent saving,” says Patricia Klein, Assistant Branch Manager at David Lerner Associates, Inc.
“This collective effort has increased awareness and participation, helping more families navigate the complexities of financing a college education.”
Who Gets Involved in College Savings Month?
College Savings Month involves a wide range of stakeholders. Families, educators, financial advisors, and community organizations contribute to spreading awareness and providing valuable resources. Financial institutions often offer special promotions and incentives to encourage saving during this period. Additionally, educational webinars and workshops are frequently held to guide families through the various aspects of college savings plans.
College Savings Month Participation Ideas
Here are some practical ways you can participate in College Savings Month and set your family on the path to financial preparedness for higher education:
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- Start or Review a 529 Plan: If you haven’t already, consider opening a 529 college savings plan. These plans offer tax advantages and can be a great way to offset rising college costs (tuition, accommodation, books, and supplies). If you already have a 529 plan, use this month to review your contributions and investment choices.
- Explore Coverdell Education Savings Account (ESA): A Coverdell ESA is a tax-advantaged way to save for college, similar to a 529 plan. The money in a Coverdell ESA grows without being taxed. You can contribute up to $2,000 per year for each beneficiary, and the funds can be used for qualified educational expenses, including elementary, secondary, and higher education.
- Set Savings Goals: According to a 2022 Sallie Mae study, College Confidence: What America knows about paying for college, many parents believe their child will attend college, yet only a small portion have started saving for it. Don’t be like them. Determine how much you need to save for your child’s education and set achievable goals. Break down the total amount into monthly/yearly savings targets to make the process more manageable.
- Automate Your Savings: Set up automatic transfers from your checking account to your dedicated college savings account. This ensures consistent contributions and helps you stay on track with your savings goals.
- Involve Your Child: Involve your child in saving to teach them the importance of saving. Show them how their savings are growing and explain how it will help them in the future.
- Seek Financial Advice: Schedule a meeting with a financial advisor to discuss your college savings strategy. They can provide personalized advice and help you make informed decisions based on your financial situation.
- Take Advantage of Scholarships and Grants: Research and apply for scholarships and grants that supplement your savings. Every little bit helps, and these funds do not need to be repaid.
Conclusion
College Savings Month is an excellent opportunity to focus on your child’s educational future. By taking proactive steps now, you can alleviate the financial burden of college expenses and give your child the freedom to pursue their dreams. Whether you are just starting or looking to optimize your savings strategy, this month offers valuable resources and motivation to help you achieve your goals.
Ready to take charge of your college savings plan? Contact David Lerner Associates today to learn more about the best investment opportunities for your family. Our experienced advisors are here to help you navigate the complexities of saving for college and secure your child’s future. Don’t wait—start your college savings journey this September!
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.