As college tuition continues to climb while student loan debt exceeds one trillion dollars, one local bank has some advice for the parents of small children: Better start saving now.
To further communicate the necessity of squirreling away some salary for your little one’s schooling, Flushing Bank [7102 3rd Ave] held a seminar for parents of the future college-bound at the Bay Ridge Library [7223 Ridge Blvd] on May 11, according to Denise Romano with the Home Reporter.
From Home Reporter:
“We try to be involved in the community as much as possible,” said Amanda Quiñones, branch manager of the Flushing Bank Bay Ridge office. “When it comes to saving for college, the smaller they are, the better.”
Financial consultant Andre Beckles talked to about 26 “future graduates” and their parents about saving options. “You go to the store every day and it seems like the prices keep going up,” he said, noting that tuition increases six to 12 percent each year. “We have to entertain the idea that saving for a college level program is just as important as retirement.”
One subject Beckles brought up was the advantages of a 529 savings plan. He reminded parents that the tax-differed investment vehicle could begin with annual contributions of as little of $25.
Saving for the future is key,” he told Home Reporter, pointing out that 20 million students enter institutions of higher learning every year, with the demand resulting in an increasingly competitive – and expensive – situation. “The better you do making it to college, the better you will be moving forward.”
Beckles also explained how funding for the plan isn’t limited to just a child’s parents.
“Grandparents can open a plan and prefund it by five years. Anyone in the family can put aside money for children,” he said. “When they get money from birthdays, they can put it in that account.”