How to Start Saving for College
All parents want the best for their children, and that includes knowing that their little ones will have the college education experience that they deserve one day. Still, it’s easy to be overwhelmed at the thought of saving and paying for that college education as we face news headlines of economic uncertainty and hear more and more about the student debt crisis.
More: 3 Tips for Talking to Kids About Their Financial Future
With all that parents have going on in their lives, it’s easy to put off the college savings process. Thankfully, there is now an extremely easy way to start saving for college, thanks to Backer. Their goal is to make college a reality for as many kids as possible. Here’s why we recommend Backer for all parents to jumpstart college savings:
Ease of Use
You can start a college fund for your entire family in just five minutes or simply connect an existing 529 plan to Backer. Your money will be invested tax-free and without confusion. Backer can simply tell you the best option for saving based on your situation. The best part of all is that you can get your first month free and keep on saving for as little as $1 per month! Since 2015, Backer has helped families of all kinds across the country avoid over $30 million in student loan debt.
A College Savings Process Personalized for Busy Parents
Are you feeling like you just don’t have the time amidst changing diapers and feeding babies to properly figure out this college savings process? This is the exact need that Backer meets. Saving for college does not need to be a complicated process for today’s families. Wealthy families are not the only ones who deserve an easy path to college. All families should have the same access to education, and Backer is doing everything they can to serve as many families as possible.
Not Familiar with a 529 Plan?
No worries! Backer clarifies everything for you. A 529 Savings Plan is a state-sponsored investment account that has tax advantages when used to save for education. Your contributions to the plan grow tax-free and can also be withdrawn tax-free to pay for any form of education. Whether it’s to pay for student loans, K-12 schooling, apprenticeship, or a four-year college degree, a 529 plan is flexible and versatile. You can even transfer funds as needed within your family. If you’re worried about how a 529 plan could affect potential financial aid eligibility, know that it has minimal impact.
The Research is Done for You
If you fear starting the investment process because it’s outside of your wheelhouse or because you don’t have time to research the best ways to go about this, Backer can help simplify the process for you. Use their robo-advisor within an award-winning mobile app to help you maximize your college savings with tax-free investing. You will be asked simple questions to help determine your goals for your little one’s college savings. Additional questions will make sure your unique situation is taken into consideration as you go through the setup process.
Family and Friends Can Participate, Too
Many parents feel that they don’t personally have enough income to tackle the college savings process on their own. Everyone who cares about your little one should be able to help, and Backer brings families together to do exactly that.
The great news is that your village can easily be part of your family’s college savings process as family and friends can easily give monetary gifts via Backer. You can invite your family and friends to support your little one with both monetary gifts and cashback rewards. This takes place via a beautifully customized gifting page which is easy to share and track.
Parents never say no to getting cashback from online shopping - whether it’s their own shopping or that of their loved ones - deposited right into their little one’s Backer account. Instead of having family members gift yet another toy that will soon be forgotten this holiday season, you can direct them to easily investing right into your child’s future.
A Fully Customizable Savings Process for Any Path of Education
Another exciting aspect of saving for college with Backer is the fact that it is not a one size fits all approach. All families have different situations and needs. Whether you want to pay for your child’s entire education, combine this with another plan, or just help your child with finances to a certain extent, Backer will help you figure that out and plan for it.
Everything Counts
Many parents are still saddled with debt, or their years of college debt aren’t far from being a distant memory. With this in mind, even if parents know they will not be able to pay for the entirety of their kids’ education, they also recognize that something is always better than nothing and every dollar counts. Backer plans include flexibility to pay for K-12 schooling, apprenticeships, community college, four-year college programs, etc. There are so many ways to lighten your child’s future financial load without stress on your part, and it can all be managed with an easy-to-use mobile app.
Every Child Deserves a College Fund
Backer knows how busy parents are, and that’s why they make getting started as easy as possible. New FamilyEducation customers receive their first month free! Plus, you can pay as little as $1 per month, regardless of how many children you have, to save for your children’s college education while still receiving all of these fantastic resources. This includes the gifting platform and cashback rewards, and there are no hidden fees or sales commissions taken whatsoever. The best part is, that even with this extremely low price point, Backer gives back and uses 1% of your fee to reach low-income families. They truly believe every child deserves a college fund as they help families face the student debt crisis.
Visit Backer.com to learn more about their 529 savings plan.
