Most families combine some level of savings and borrowing when paying for college. The best way to build your savings is to put money aside early and often. Thanks to the power of compounding, saving and investing even a little each month is usually more cost-effective than borrowing money and paying interest on it.1
Find money in your budget
With all the drains on your budget, what can you really afford to save for your child's education? Even $30 a month—less than the cost of your morning coffee or a few lunches out—can go a long way toward helping you save more and borrow less.
* AT $4/DAY WITH 5% INTEREST
This is a hypothetical scenario and does not reflect an actual investment.
Source: "Pay for College - College Savings Calculator." The College Board April 2015.
Start a savings conversation with your kids
Talking to them while they're still young can help them play an active role in making their future a success. To get you started, the Arkansas 529 GIFT Plan has some fun tools.
- Little by Little ebook: Children become a part of a series of short stories designed to teach them how little by little things grow.
- What is Money?: We explain the basics of money and why it is important.
- When I Grow Up: Through activity based interactions they'll think about what they want to be in the future.
- Save, Share, and Spend: Save for the future, spend today, share a little with those in need.
- Dream job finder: Interactive gameboards let kids follow their interests to uncover their dream jobs, whether they love sports, art, music, technology, business, helping others, being outdoors, shopping, or being involved in the community.
- Get educated: Find out how much college or vocational school your child will need to achieve the career of their dreams.
- Compare results: Parents take the challenge to see how well they really know their child and what it takes to help them reach their dreams.
- College Cost Cruncher: Get a ballpark estimate of what your college degree could cost.
- College Compare-izer: Compare your favorite schools based on a list of criteria that's important to you.
- Brag Bank: Keep track of your experience to build a stronger college resume.
- FAFSA Checker: Organize the items you need to fill out your FAFSA.
1A plan of regular investment cannot ensure a profit or protect against a loss in a declining market.