How much money do parents or students need to save for college? That’s a common question throughout the year, but one that gets a lot more attention during the fall months. Students are heading to college and high school students are completing applications.
“A good goal is to save around 25 to 50% of what you believe will be the cost of college,” CPA Kenneth Hall of the New York State Society of CPAs said.
The easiest way to get the ball rolling is with a Section 529 College Savings Plan. They are allowed in most states across the U.S., and are also common in New York.
Contributions to that account can be deducted from your income tax.
There are also some easy, common tips to help save money when heading off to college:
– Taking college courses in high school. Getting a head start is crucial to saving money down the road. Individual classes can cost thousands of dollars.
– Be careful of social media profiles. Colleges and universities use these to determine worthiness of different scholarships or even general acceptance.
– Get letters of recommendations ahead of time.
– Identify budgeting habits with your student that can help them be successful as they move toward college.
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