Saving for college is a lot like investing for retirement: everyone understands it’s important, but it’s easy to put it off. Remember, your education may be the most important investment you ever make. And although it’s never too late to start putting aside money for your education, the savings really stack up when you start saving early!
Invest in a Savings Plan
Put your savings to work for you by opening an Indiana CollegeChoice 529 Savings Plan account. It only takes $25 to get started, and your account grows free of taxes. Withdrawals for education expenses are also tax-free.
BONUS: Contributions to your Indiana CollegeChoice 529 Savings Plan earn a 20 percent state tax credit (up to $1,000 annually). Anyone can contribute to your account and take advantage of the tax credit. The money you save can be used for your education or that of a family member—even if you move or attend college in a different state.
Explore Other Ways to Save
- Open a savings account. Putting even a few dollars into a savings account each week or month really helps. Talk to your bank or financial planner about safe investment options that offer better interest rate returns than a traditional savings account.
- Enroll in programs like Upromise. Sign up for Upromise and part of what you spend on eligible purchases (like groceries, gasoline and shopping) will be contributed automatically to your Indiana CollegeChoice 529 Savings Plan. Link your credit and debit cards to your Upromise account and watch your savings grow as you go about everyday family spending. Friends and family can also designate their Upromise rewards to your account.
- Make your money work for you. Every dollar saved from a summer or part-time job can make a difference over time. If you work full-time, talk to your employer about employee savings options that let you contribute before taxes are taken out of your paycheck.
- Give the gift of savings. Ask relatives and friends to contribute to your college savings account for birthdays or holidays. If they live in Indiana, their contributions to your 529 plan are eligible for the state tax credit.