Skip to content

Saving For College: A Beginner’s Guide To Using A 529 Plan

College is expensive and that’s not changing anytime soon. The cost of a college education has been steadily rising in the past 10 years. That’s why saving for college right now is more important than ever.

According to U.S. News & World Report, attending a four-year public college or university can easily exceed $100,000 in tuition and fee charges for out-of-state attendees. The price tag for four-year attendance beginning in the 2021-2022 school year at a private university reached $240,000, and that’s for tuition and fees only.

So what’s can the average parent do? You should begin saving for your child’s tuition sooner rather than later. Many parents consider starting a 529 plan. A 529 plan allows you to save money for your child’s college education that grows tax-free. While plans differ from state to state, the opportunity to let your money compound tax-free is certainly attractive.

Find out more about 529 Plans here.

The post Saving For College: A Beginner’s Guide to Using a 529 Plan originally appeared at Everything Finance.