How do I save for college?
A savings account is a great way to help pay for college. Open a
savings account and designate the money to be used only for
college. As the amount grows, so will your motivation to not use it
for other things. Consider having automatic payments made directly
from your paycheck or talk with your parents about allocating an
amount from the family budget for education. This will help you
save regularly and will make saving for college a family habit.
Did you know that if you save just $25 a week starting with your
freshman year in high school, you will have saved more than $5,000
by the time you graduate? Think of how much you would have if you
start saving when you are even younger! Visit your local bank today
to find out how easy it is to set up a savings account.
You may be interested to know that in Colorado we have the
world's first (and only) bank just for young people. Young Americans
Bank, located at 3550 East 1st Avenue in
Denver, is a real state-chartered, FDIC-insured bank.
College Savings Plans - 529 Plans
State-sponsored 529 Plans are one of the best ways for families
to save for college. These savings plans offer advantages you can't
get from other savings plans. Learn more about Colorado's
CollegeInvest 529 College Savings Program along with other savings
programs they offer by visiting www.collegeinvest.org or by calling 1-800-448-2424.
Coverdell Education Savings Accounts (formerly Education
Education Savings Account (ESA) allows your parents to receive tax
advantages while saving for your education. All money put into this
savings account must be used for educational expenses. To learn
more about ESAs, ask your parents to contact the Internal Revenue
Service (IRS) or talk with a tax advisor.