Keep Your College Savings Nimble
Life is unpredictable. Even if you’ve been saving money every month since your daughter was born, she may choose not to go to college or defer enrollment to join the Peace Corps. Or best of all, maybe she’ll receive a full scholarship and become a rocket scientist. With a flexible 529 plan, you have options. You can simply keep the 529 plan in place and the account could continue to grow. You can also change the plan beneficiary to another child or yourself if you decide to go back to school.
Keep in mind that you can use a 529 for any qualified expenses. So even if tuition is covered by a scholarship, your account can help take care of room and board, books and other costs.
It’s also important to plan for the unexpected that might occur during college. Your son may decide he needs a car or wants to travel abroad, or he may suddenly fall ill. Make sure you have savings outside a 529 plan for those extra expenses not considered qualified expenses, that may pop up.
It’s Never Too Late to Start Saving for College
Sure, it’s better to save for college as soon as possible. But whether you have a newborn or a late teen, it’s never too late to create a strategy to save for college. Even if you don’t use the funds until senior year, every little bit helps.
For more insights and information, check out savingforcollege.com and finaid.org.