Getting
Started
Starting early is one of the first and most important steps
you can take in accumulating the money you need to pay for college.
Because of the power of compounding, the sooner you start investing,
the more opportunity your contributions have to grow —
provided of course that you reinvest any earnings your investments
produce.
Experts
suggest that you open a special college account when each
child is born and add something every month. You might encourage
grandparents or other relatives and friends to make gifts
to the account as well. If you keep it separate from your
household account or even a general investment account, it’s
easier to track its performance. And you may be less likely
to tap it for everyday expenses.
The earlier
you start, the less you’ll have to contribute each month
to reach the goal you’ve set. For example, if you added
$50 a week to an account providing an 8% return, you’d
have just over $100,000 in 18 years on an investment of just
$46,800.
*Note
The information presented here is solely intended to be an
educational resource and is not intended to provide specific
investing, tax, business, or legal advice to any individual
or entity.
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