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Saving for College

Celebrating 75 years of service - PFCU Credit Union

According to Fidelity, the average annual cost for a 4-year private college is $49,870*. How is your child or grandchild going to cover this cost? If you want to start saving but it seems like you don’t have all the answers, know that it is smart to start saving early to set children up for success. Here are some tips to help your grandkid(s) save for college:

Set up a Savings Account – A savings account is a great place to save for your grandchildren. Setting up a bank account for them can provide a good opportunity to teach them about money and helping them start their college or adult life with some money saved.

Invest in Certificates of Deposit or Long-term Bonds – Long-term investment plans typically offer a higher interest yield and more money to you. PFCU offers certificates of deposit specifically for children. Learn more here.

Open a 529 Education Savings Plan – this savings plan is available in every state. It offers an appealing combination of tax advantages, control, flexibility and minimal impact on student aid (Fidelity.com).

Start Financial Literacy Education Early - Financial literacy helps people manage their money better and have control over their financial life. By teaching your grandchildren from a young age you are setting them up for long-term success.

 

 

 

 

*Source: Fidelity.com