The move to pre-K or kindergarten brings many reasons to celebrate. Your child is growing and learning and starting an exciting new chapter, and your family budget is poised for a healthy boost.
That’s right — those costly childcare fees are about to drop or disappear altogether, leaving you with something of a monthly windfall. And while it might be tempting to absorb those newly freed dollars into everyday expenses, this moment is the perfect opportunity to redirect that money toward your child’s postsecondary plans.
To save you time — and help you envision the big picture — we consulted the experts and came up with three smart ways to convert your childcare costs into college savings:
- Commit to Saving Consistently. Many parents wait to save for college until they can set aside a particular amount of money, but the reality is that any amount can be a meaningful start. The key is adopting a saver’s mindset and making your saving a habit, using either a portion or all of the childcare fees you were previously paying. Regular contributions add up over time, especially when started early, and you can always adjust your contributions when your financial situation changes. Remember that the goal isn’t perfection. The goal is progress.
- Lock in college costs with a Florida Prepaid 529 Plan. With as little as $29 a month, parents can lock in future tuition and dormitory costs at today’s prices. Reliable and risk-free, this plan is a great choice for those who prefer a structured approach to saving. Your investment is 100% guaranteed by the State of Florida. Families can purchase in one-year increments, and the value of your child’s plan may be used nationwide — at public, private, trade and technical schools. Parents, grandparents and family friends may contribute, and students have up to 10 years after high school graduation to use their plan.
- Choose a Florida Investment 529 Plan and Track Its Growth. Providing both flexibility and control, the Investment 529 Plan allows you to choose how much to save and whether to apply a simple, set-it-and-forget-it investment strategy based on child age — or opt for an intermediate or advanced approach. The investment plan also covers a wide variety of higher education expenses, including tuition and fees, room and board, books and supplies, and computers, as well as K-12 tuition (up to $20,000 annually).
College might seem like a far-away expense, but the years pass quickly, and starting early gives your investment more time to grow. The good news? You don’t need to have every detail figured out yet. What matters most is simply getting started. And whether your child enrolls in a traditional university or college, or pursues a highly skilled trade, every dollar you save today is one they won’t have to borrow in the future.
Since 1988, Florida Prepaid’s goal has been to help make saving for college affordable and attainable for all Florida families. Build your perfect college savings strategy in minutes!
