Saving for Baby’s College: Why It’s Never Too Early
Brought to you by PNC Bank

Find out how to start saving for your child’s education right now.

Saving money for your child’s education is:
You should put at least $500 into your child’s college fund every month.
College education costs are:
A 529 College Savings Plan is the same as an everyday savings account.

Right!

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The Baby’s Budget Challenge

Over the course of a month or two, work out how much money you realistically can afford to put aside for your child’s education. To do this, first deduct all your non-negotiable monthly expenses from your paycheck – these include housing costs, household bills, groceries, retirement contributions and savings. Then, take the money you are left with, which would typically be used for “extras” such as entertainment, and work out how much of that amount you can contribute to a college fund. Once you have done this, you can take action and set up a 529 College Savings Plan or other savings option. You’ll know soon enough if this amount works for you. If it doesn’t you can always adjust it.

Session Q & A

  • As soon as possible! College is already expensive and the cost is increasing by 5% every year. Even if you can only afford to put a small amount of money away each month, it will greatly benefit your child in the future.

  • You should always take care of your own financial needs first. This means that your retirement fund should be a priority over your child’s college fund. When you have enough saved up for yourself you can start focusing on others.

  • There are no set rules. The important thing is to work out how much you can afford to save, and then stick to it. A good way to do this is to have the amount automatically deducted from your account every month.

  • There are many reasons to choose a 529 College Savings Plan. It has a variety of tax advantages and is open to anyone.

Anna Newell Jones

Anna is a photographer who racked up substantial debt from credit cards and loans from family. In 2009, she began her Spending Fast® and Spending Diet plan, and managed to pay off almost $24,000 in debt in 15 months. She started the blog And Then We Saved to share her strategies with others. She has been quoted in publications including Self, US News and the Chicago Tribune, and has appeared on CNN Money and HLN Network. She lives in Denver with her husband Aaron.

Anna is a photographer who racked up substantial debt from credit cards and loans from family. In 2009, she began her Spending Fast® and Spending Diet plan, and managed to pay off almost $24,000 in debt in 15 months. She started the blog And Then We Saved to share her strategies with others. She has been quoted in publications including Self, US News and the Chicago Tribune, and has appeared on CNN Money and HLN Network. She lives in Denver with her husband Aaron.

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