It’s never too soon to start saving for your education.
It may be difficult to think about saving for college when college is 18 years away – or longer! But, the sooner you start saving, the better. With a young child, you’re probably wondering - what is the rush? However, there are many reasons to start to save sooner rather than later:
Tuition costs have been rising 5% annually on a national level according to the College Board*. Starting to save now can give you a head start towards meeting your goals and hopefully reducing your reliance on student loan debt later. If you’re a Maryland taxpayer, up to $2,500 in contributions per beneficiary or account (depending on the plan you choose) may be deductible from Maryland income – potentially putting more money in your pocket come tax time. View our Maryland 529 Tax Benefits Infographic to see how these benefits could add up over time.
Starting to save for college early can help put the power of compounding on your side, since every dollar saved today has more time to potentially grow. This chart shows just how much you could save in the long run by starting your 529 plan early:
How to Get Started
Maryland Prepaid College Trust: You can enroll your child and take advantage of current prices until your child’s first birthday. If your child is 1 year or older, you can enroll during our enrollment period.
Maryland College Investment Plan: You can enroll your child as soon as you receive their Social Security Number with as little as $25 per month or an initial contribution of at least $250.
You can open a Maryland College Investment Plan account with as little as $25 per month, or an initial contribution of at least $250. You would simply name yourself as the beneficiary. Then, any time after your child is born and has received a Social Security Number, you can change the beneficiary to your child.
Once your child is born, you could consider also enrolling them in the Maryland Prepaid College Trust.
*College Board, Trends in College Pricing, 2014