September marks not only a new school year, but also National College
Savings Month—a perfect time for families to open a college savings
account or bolster one they’ve already begun. A national study from
Sallie Mae and Ipsos reveals that, despite the cost of college, fewer
families are saving. In the past two years, the percentage of families
saving for college has dropped from 60 percent to 50 percent.
To help families get started and reach their savings goals, Sallie Mae
asked customers to share their successful savings tips:
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Create a plan for college and be cost conscious. Ellen K. of
Indianapolis, Ind., says to use college planning tools to create a
roadmap. “Sallie Mae’s CollegeAnswer.com
has a wealth of information for both students and parents – from
locating scholarships and other funding sources to managing your
money. We used the site to plan the cost of college. We have chosen
in-state schools for our kids, and we have taken advantage of
scholarships.”
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Start as early as possible. Jennifer G. of St. Louis, Mo.,
opened a 529 college savings plan for each of her kids. “I am saving
for my daughter who is 4 years old and my son who is 2. It’s important
to have an account opened as early as possible so you can contribute
over a longer period of time as your children grow older.”*
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Use tools that grow your savings. Craig Z. and his wife of
Boston, Mass., use Upromise by Sallie Mae college savings rewards
program to boost their college funds. “We have four children ages 9,
10, 13, and 21, one of whom is in college now. We joined Upromise in
2001; we were looking for opportunities to save as much as possible,
especially while our kids were still young. We save money every time
we shop online and when we use our Upromise World MasterCard. So far,
we have saved more than $4,000 through Upromise.”**
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Grandparents and gifts can help. Delicia M. of Atlanta, Ga., is
saving for college for her 10-year-old son, and his grandparents help
with 529 contributions as gifts. “My son’s grandparents were always
asking what he needed for his birthday and Christmas, and it became
difficult for them to find gifts. I finally realized the perfect gift
for all involved was a contribution to his 529 college savings plan. I
use Ugift and send email invitations to family to make it easy to
contribute to his account. It means so much that he has money going
towards a college fund and not into a toy, game or clothes that he
will outgrow in the next year or two.”*+
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Put your savings on auto-pilot. Amber T. of Fayetteville, Ark.,
says saving is easier when it’s automatic. “My advice to families is
to set up an auto-draft for a specific amount and time period and
watch it grow. I have a monthly contribution that goes straight from
my paycheck into the savings account.”
To help families save and plan for college costs, Sallie Mae unveiled
three mobile
apps to make it fun for families with children of any age to prepare
for higher education and future careers.
*When you invest in a 529 college savings plan you are purchasing
municipal securities whose value will vary with market conditions.
Investment returns are not guaranteed, and you could lose money by
investing in a 529 college savings plan. Account owners assume all
investment risks as well as responsibility for any federal and state tax
consequences.
**This is an active Upromise member. Actual savings depend on level of
spending.
+Ugift is available in connection with certain 529 plans administered by
Upromise Investments, Inc. or its affiliates.
Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services
company specializing in education. Celebrating 40 years of making a
difference, Sallie Mae continues to turn education dreams into reality
for American families, today serving 25 million customers. With products
and services that include 529 college savings plans, Upromise rewards,
scholarship search and planning tools, education loans, insurance, and
online banking, Sallie Mae offers solutions that help families save,
plan, and pay for college. Sallie Mae also provides financial services
to hundreds of college campuses as well as to federal and state
governments. Learn more at SallieMae.com.
Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are
not sponsored by or agencies of the United States of America.
Copyright Business Wire 2013