September is National College Savings Month, the perfect time to focus on planning for one of life’s biggest financial investments: higher education. With college costs continuing to rise, starting a savings plan early has never been more important. The sooner you begin, the more time your money has to grow, and the more prepared you’ll be we the time comes. Whether your child is just starting school or already thinking about college, now is the time to take action. Read on for our top three tips to help you and your family plan ahead with confidence.
Tip 1: Open a 529 College Savings Plan
A 529 College Savings Plan is one of the most effective tools for building education savings over time. These plans are sponsored by states and authorized under Section 529 of the Internal Revenue Code. Anyone can open an account, and contributions are made as after-tax dollars. The major advantage is that your money grows tax-free, and withdrawals are also tax-free when used for qualified educational expenses such as tuition, fees, books, and certain room-and-board costs. 529 Plans also offer flexibility: if your child doesn’t need the funds, you can transfer the balance to another eligible family member, roll it over to another state’s 529 Plan, or even roll over unused funds into a Roth IRA for the beneficiary, subject to limits. This flexibility makes a 529 Plan a powerful, long-term investment in your family’s educational future.
Tip 2: Grow Savings with Share Certificates
Share certificates are time-based savings accounts that earn a fixed rate over a set term, often ranging from a few months to several years. They’re a -secure , low-maintenance option that provides peace of mind -with your funds secure from market fluctuations. While share certificates don’t have the same tax advantages as 529 Plans, they can be a great complement for short- to mid-term goals, such as savings for books, technology, or other education-related expenses. They work especially well for families who value stability and want to lock in a predictable rate of growth. Check out our Signal Smart® Share Certificates to see how they can help strengthen your overall college savings strategy.
Tip 3: Apply for Scholarships
While saving through tools like 529 Plans and share certificates are a smart move, don’t forget the power of scholarships in your college funding strategy. Scholarships are free money that can significantly reduce out-of-pocket costs and help your savings stretch further. From academic and athletic awards to community service and personal interests, there are scholarships for nearly every student. The key is to start researching early and apply often.
Planning for college can feel overwhelming, but taking small, intentional steps today can make a big difference tomorrow. Whether you’re building long-term savings with a 529 Plan, adding stability through share certificates, or reducing costs by applying for scholarships, every effort helps bring higher education within reach. The key is to start early, stay consistent, and use the tools available to you. By combining smart saving strategies with proactive planning, you’ll be better prepared to support your child’s education journey and set them up for a bright future.
