Today is National Higher Education Day – and as college tuition prices continue to increase, it’s important to start thinking about preparing for your young ones’ higher education as soon as possible.

Check out these tips to get started on that college savings account today!

• Start a 529 Plan. A 529 College Savings plan is tax-free when used for higher education expenses. The owner of the account, parent, or grandparent has control over the funds and can change the beneficiary. The funds in the 529 plan will not affect the amount of financial aid the child can receive once in college.
  
  
• Try Another Savings Tool, Like a Roth IRA. While most people use a Roth IRA to save for retirement, it has flexibility that allows it to be used for other purposes, too. You can withdraw qualified education expenses from a Roth IRA at any time without penalty – tax-free!

   

• Put Away Money Consistently. It doesn’t matter how much, or how little, you can afford. Start putting money into a savings account regularly! Over time, any amount can add up and take care of a significant chunk of tuition.  

   

• Use a High-Yield Savings Account for the College Fund. In a high-yield savings account, your money can multiply with no effort from you. Shop around for an account with a great interest rate and start earning on the fund’s account balance!

   

• Look for Ways to Cut College Costs. Start planning to ensure your kids can get out of school with as little student loan debt as possible. Maybe that means planning to go to a smaller school with cheaper tuition or choosing to live in an apartment with roommates instead of a dorm or sorority or fraternity house.