Saving for Kids College is Nothing to Be Afraid Of

Halloween is right around the corner. And while ghosts, ghouls and goblins may give you a little fright, saving money for your kid’s college expenses doesn’t have to. As intimidating as it seems, saving for a child’s college education is simpler, and less frightening, than most people may realize.

Here’s how to make saving money for college a treat.

With South Carolina’s Future Scholar 529 College Savings Plan, saving for your child’s college, technical school, vocational school, apprenticeship or graduate program is simple - not scary. By using these tips, you’ll begin your “saving for college” fund quicker than you can say “Boo!”

Start early.

The simplest way to shoo away the “scaries” is to start saving as early as possible. Beginning early increases the earning potential of your Future Scholar college savings fund and let’s compound interest work for you. And since there’s no minimum requirement to begin saving, there’s nothing to be afraid of.

When you visit Futurescholar.com to open an account, the application will guide you through the steps including:

(1)   You’ll provide some basic information: name, address, date of birth and social security number for yourself and the beneficiary.

(2)   You’ll select from a variety of investment choices.

(3)   You’ll make an initial contribution.

Anyone can open a Future Scholar account in any beneficiary’s name. Also, anyone - parents, grandparents, aunts, uncles and friends – can contribute, which makes a Future Scholar contribution a great gift for birthdays or special holidays.

           Make it automatic.

One of the best ways to ensure that you make regular contributions to your Future Scholar account is to “set it and forget it.” Automatic contributions will make saving a treat. Just set the amount, choose a recurring date, and watch your contributions go into your account each period. The Future Scholar website will show you how. You’re sure to enjoy saving for your child’s education without stressing over the details.

Choose your investment option. 

The Future Scholar 529 College Savings Plan offers a variety of investment options. The Age-Based Investment Option, our most popular choice, tracks your investment strategy with your child overtime as your child progresses from kindergarten to graduation.

As enrollment in college draws nearer, the mix of investments automatically shifts from more aggressive equities to more conservative fixed-income and money market mutual funds. You may pick the track (conservative, moderate or aggressive) that best meets your risk tolerance and savings goals.

 Other investment options include Target Allocation, in which your investment option remains constant no matter your child’s age and the Single fund Investment Option, which allows you to select from a variety of offerings, each of which invests in a single underlying fund.

You’re in for a real treat when you save money for college! 

          When you open a Future Scholar 529 account, funding your child’s college education won’t be the least bit scary. What’s more, when you contribute to your account, you’re in for a real treat! 100% of your contribution is tax deductible from your South Carolina tax return. Your savings will grow tax free, too. When it comes time to withdraw your 529 funds to pay for qualified education expenses, such as tuition, room and board, books and computers, you won’t pay any taxes on your earnings. No tricks, just treats!

            Saving for college is easy with Future Scholar. Visit futurescholar.com today to learn more and open your Future Scholar 529 account today.