Aside from a home, higher education may be the most expensive and most important purchase in a person’s lifetime.
Chinese philosopher Lao-Tzu said, “Even a journey of a thousand miles begins with a single step.” And that’s probably where you are now — looking to take that first step in what seems a daunting journey. But the important part is to get started. With a bit of careful planning, the goal of a funded college education may be attainable. In this section, we invite you to:
Today, the average cost of a four-year undergraduate education is more than $93,680 at a public college and more than $208,040 at a private college.footnote 1
That’s a considerable amount for any family to accrue, but if you start saving early, you can potentially take advantage of the power of compounding savings and interest for a longer period of time.
In the chart, you can see how : contributions might grow if you start with $5,000 when your child is a baby and continue with $100 per month until your child turns 18.
By choosing to make regular contributions that fit your budget, you can ensure that saving for college becomes a part of your monthly investment strategy. Soon, you may find that saving and investing become a habit, and planning for the future is easier than you thought. You can instill this discipline by setting up an Automatic Investment Plan (AIP): Contributions to your Account in a fixed amount of money in regular intervals. Funds are automatically deducted from the Account Owner's bank account or other financial institution, or through payroll deductions. footnote 2
Whether your monthly savings budget is $50 or $250, contributing a fixed amount into a 529 account could really help your savings add up over time.
The chart shows how an investment could grow over 18 years, using an automatic investment plan with regular monthly investments of $50, $100, or $250.
There are many ways to help close the gap between the cost of college and the funds you have available. First, you’ll need to educate yourself on the many ways to offset the cost of education. Consider the following:
Scholarships: A wide variety of financial scholarships are available to many deserving students.
Financial Aid: By completing a standardized Free Application for Federal Student Aid (FAFSA) application, you can find out if you qualify for financial aid. You can also learn more about federal financial aid opportunities by visiting the Federal Student Aid Information Center (FSAIC) website or the Texas Comptroller of Public Accounts website.
2331-NLD-4/23/2021