For college savings, 529 plans are all the rage in investing for kids, and rightly so! They cover most educational expenses at U.S. colleges and can grow tax free for decades. Ready to start investing for – and in –your kids?
- Choose a plan sponsor state (you don’t have to pick where you live so shop around).
- Contribute to fit your budget. Minimums are as low as $15. The maximum is $140,000 if both parents pre-pay the first five years of eligibility.
- Check out investment options like target date funds that aim to payout when the beneficiary starts college. Others plans let you lock in current tuition costs.
- Tell friends and family! They can contribute too.
Compound interest can be your child’s best friend when it comes to paying for school. The earlier you start, the better the leg up.