Setting aside money for a goal, even if it’s your child’s higher education, can be a challenge. Here are a few simple ways to automate your savings to help achieve your financial objectives
One of the easiest way to save is to automatically contribute money before you have a chance to spend it elsewhere. Therefore, to grow your 529 Plan effortlessly, sign up for Automatic Investment Plan (AIP).
With an AIP, you can set up recurring contributions to be made directly from your bank account. You can align your automated 529 Plan deposits with your paydays or set a monthly contribution schedule. Many account owners use AIP to contribute regularly to their children’s accounts, no matter the amount. Even if you’re putting away the minimum per investment option, it can add up!
Build Your Savings With Tax Refunds Or Disappearing Expenses
A federal or state tax refund can be a budgetary windfall. Consider how much closer your college savings goal would be if you contributed some or all your refund to your child’s 529 account.
Another way to automate your savings is to add the money from disappearing expenses to your child’s 529 Plan. Disappearing expenses are those costs in your budget for a limited time span. For instance, daycare is a large disappearing expense for families. Once your child starts kindergarten, consider rolling over your former daycare costs into regular contributions to your 529 account. You won’t miss it and you are continuing to support your child’s educational needs. Other disappearing expenses include paying off a car or your own student loans.
Let Others Help You Save
Family and friends want to give meaningful gifts for the milestones in your child’s life. You can ask them to consider contributing to your child’s 529 Plan in lieu of gifts for baby showers, birthdays, holidays, graduations, and many other special occasions.
These are just a few simple steps to help you reach your college savings goal. If you have questions about college planning, please contact an HCM Wealth Advisor:
Mike Hengehold (Mike@HengeholdCapital.com)
Casey Boland (Casey@HengeholdCapital.com)
Jake Butcher (Jake@HengeholdCapital.com)
Jim Eutsler (Jim@HengeholdCapital.com)
Greg Middendorf (Greg@HengeholdCapital.com)
Steve Hengehold (Steve@HengeholdCapital.com)
Doug Johnson (Doug@HengeholdCapital.com)