Last night, Bee informed me that the planet Mars was so named because it’s red – the color of blood – and in Greek mythology, Mars was the god of war.
Have I mentioned that Bee is six? I have an English degree, and I didn’t even know that.
This child absolutely MUST go to college. She could change the world.
It’s very important to me that my girls get a college education. Unfortunately, with college costs skyrocketing, I’m concerned that by the time they’re ready to go, the price of tuition will be out of reach for the average middle-class family.
I decided that I’m going to try my best to make sure that higher education is an option for my girls, if they want it. Yesterday, I did something that has been on my list for several months – I made a college savings binder:
In this binder I have three sections. The first section is for the girls’ 529 college savings plan information. For the last four years, we have saved $100 each month for our girls’ college education. In September, we divided the money evenly between the girls, and invested it in 529 plans.
If you’re unfamiliar with Section 529 plans, they’re accounts that offer parents attractive tax benefits for saving money toward college, and they allow parents to retain permanent control over the assets. Anyone can contribute to a Section 529 plan, regardless of income. When distributions are made from the account for the beneficiary’s qualified educational expenses, there is no taxation on growth of the original investment. Educational expenses can include things like uniforms, books, and even transportation. Click here to research 529 plans in your state.
I also have a section for our Upromise account in my binder. When you register your credit cards with Upromise, a portion of the money you spend with Upromise partners is deposited into your account. You can also invite friends and family to register with Upromise, and designate your child as a beneficiary. Your Upromise account can be linked to your 529 plan(s), and the money will be automatically transferred so that it can begin earning interest. Click here to learn more about Upromise.
The third section of my binder is for the girls’ Kid’s Club accounts. Our bank has special savings accounts for children, with fun incentives and rewards. One of the girls’ favorite Kids’ Club events is Swim Night. At our local pool, the bank has a cook-out, a 2-hour swim, and a carnival with games and prizes. Admission is free for the entire family, and the girls look forward to it all year.
I opened savings accounts for my kids right after they were born, because I strongly believe in teaching children about financial responsibility at an early age. In order to become financially secure adults, children need to learn good saving habits, and how to make smart purchases. They also need to learn about the dangers of accumulating debt, and why they can’t immediately get anything they want. Too many people are never taught these financial fundamentals, which is part of the reason why our economy is in its current disastrous state.
According to this college cost estimator, the average cost of annual tuition at a public university in 2021 is estimated to be about $33,546. So, if Bee attends for 4 years, her total cost will be $134,184. So far, she has saved about $1300 in Christmas and birthday money, and we’ve saved about $2500 on her behalf.
Only $130,384 to go.
Oh man.
