How is college manageable? When is the best time to start saving for college? How can parents help set their children up for success in paying for their higher education? Do you need to be wealthy to help your child pay for college? With many colleges costing thousands and thousands of dollars a year, how do so many Americans afford tuition? One of the most common ways to pay for college is with a college savings account. A college savings account is a long-term savings account.
Every child is eligible for a college savings account starting at birth. The earlier this account is started, the more it will grow. By the time a child reaches the age of eighteen, they could have enough money saved in this account to help assist them in paying for their higher education.
While many people are concerned with creating a college savings account as they fear it will impact their future child’s financial aid eligibility, that is not necessarily true. Although a college savings account can be considered a parent asset on the FAFSA, the impact is typically very low. One way to avoid these complications is by contacting the schools to which the student is applying. Different colleges and universities generally have different processes regarding finances, but it is always important to remember that a college savings account can be beneficial to a college student.
How Do College Savings Accounts Work?
College savings accounts can be administered by anyone from a bank, nonprofit, school district, city, or state. This helps children from birth to the age of eighteen save for college tuition and other expenses related to higher education. There are multiple types of college savings accounts, but the most common is a 529 plan. These accounts are tax-exempt with investment options, meaning the money will grow over time. Some families will put money into a Roth IRA account to help pay for college. This allows the student to take out the money for their higher education expenses penalty-free.
Why Choose BHCU?
BHCU was founded in Ridley Park, Pennsylvania in 1952. Since then, we have expanded our services across Delaware County and Chester County, including the greater Haverford area. We offer all our members a federally insured credit union with comprehensive banking services. Our main mission is about belonging, not banking. We are all on this journey of life together, so BHCU prides itself on being with our members every step of the way.
If you find yourself searching for a student savings account for your Haverford area child, then look no further than BHCU. Some of our student account benefits include no fixed term, no fees, no minimum balance, no monthly deposit required, 24/7 account access, the interest rate may rise, and insurance up to $500,000. We want to help the future children of our country succeed. Start saving for your child’s future higher education with the help of BHCU’s student savings account. Contact our professionals today to get started.