How to Prepare for College Expenses

Ask any parent whose teenager is heading to college this fall, and they’ll tell you – those 18 years fly by fast! You might also hear how their child’s acceptance letter sparked feelings of pride, joy – along with a sudden jolt of financial anxiety. Prepare your finances now so that when the time comes, you can celebrate your child’s achievement without worrying about the costs.

Three Smart Ways to Build a College Savings Fund

1. Deposit Early and Often: Start making regular, automatic deposits today to maximize the benefits of compound interest. The sooner you start, the more time your money has to grow. Making college savings automatic removes the guesswork and emotional decisions that often derail financial goals.
2. Use Tax-Advantaged College Savings Accounts: Tax-advantaged college savings accounts, especially 529 plans, are powerful tools designed to help families manage the rising costs of higher education. These accounts work like a turbocharged savings vehicle, letting your money grow tax-free. Contributions can be invested in a range of assets, and the funds may be withdrawn to pay for qualified educational expenses. Learn more here
3. Invite Others to Contribute: Transform gift-giving occasions into opportunities to invest in your child’s educational future. Instead of collecting more toys or clothes that will eventually be outgrown, consider creating a tradition where relatives can contribute to your child’s college savings account during birthdays, holidays, or other special occasions. This not only helps the college fund grow faster, but it can also help teach a child that saving for the future is more rewarding than the excitement of getting something right now.

Start saving today so your money has more time to grow. Open a 36-month Wescom College Saver Certificate with a $250 minimum deposit. This account is like a Savings Certificate, except you can make additional deposits during the Certificate's term if your child is under 18.*