A Financial Planner’s Guide to Smart College Savings
More Floridians are recognizing the value of saving for college with 529 plans, whether through a Prepaid Plan or a Savings Plan. So far this year, more than 60,000 families have enrolled in a Florida 529 Plan, about 30% more than last year, reflecting a growing awareness of the importance of planning for higher education. So, what’s driving this increase?
We spoke with Mari Adam, a certified financial planner and owner of Mari Talks Money in Boca Raton, who has over 33 years of experience guiding Florida families in their college savings journeys. She attributes the rise to several factors, including enhanced tax benefits, word-of-mouth recommendations and improvements to Florida Prepaid’s offerings, making plans more attractive and accessible than ever.
The flexibility of Savings Plans, combined with the security of Prepaid Plans that lock in tuition costs, makes Florida 529 Plans a smart choice for families looking to secure their child’s educational future.
Getting Started: Practical Advice for Success
If you’re feeling inspired to start saving, Adam offers several key tips to help you succeed:
1. Just Do It.
While it’s great to be saving, traditional savings accounts may not be the most effective way to save for college. 529 plans offer tax-free earnings that make your savings work harder than regular savings accounts. “The mere act of opening a 529 account and saving for college means you could save three times as much for college as someone who does not plan ahead,” said Adam. “Your kids or grandkids are over four times more likely to graduate, too.”
2. Don’t Delay.
The earlier you start saving, the better. Even if you’re unsure whether your child will attend college in the future, saving now gives them the option to pursue higher education without financial barriers. The long-term benefits of a college degree, including higher earnings and greater job security, make this an investment worth considering.
3. Involve Family and Friends.
Encourage grandparents and other family members to contribute to your child’s college fund. “Bring grandparents into the loop, and suggest that birthday or graduation gifts be directed towards the 529 Plan,” Adam advised. Florida Prepaid makes it easy for loved ones to give the gift of education, which can significantly boost your savings over time.
4. Automate Your Savings.
One of the most effective ways to stay on track with college savings is to automate your payments. “Set up monthly payments, to keep your savings on autopilot,” Adam recommended. This ensures that you consistently build your child’s college fund, regardless of whether it’s a good year or a challenging one financially.
Smart Savings for a Brighter Future
Saving for college is one of the most important steps you can take to ensure your child’s future success. With Florida 529 Plans, whether you choose a Prepaid Plan that locks in today’s plan prices or a flexible Savings Plan with a range of investment options, you’re making a smart investment in your child’s education.
Ready to Take the Next Step?
Visit our website to explore your options and discover the perfect plan to secure your child’s future.
