Financing Higher Education

Dreaming about sending your child to college but worried about the costs? You're not alone! With the rising cost of college as well as other expenses, the thought of saving for higher education can be overwhelming. However, various savings plans and tools are available. National 529 Day, observed annually on May 29th, aims to raise awareness about the benefits of saving for higher education, particularly through 529 college savings plans. It also serves as a reminder of the various savings tools available for college planning, including FORUM's Sprout Account.

529 College Savings Plans
529 plans offer tax-advantaged savings (including tax-deferred growth and potential state tax deductions) for future education expenses. This allows families to save for college and other educational goals. National 529 Day is a great reminder to open a 529 account, contribute to an existing account, or make a gift to a friend or family member’s account (like a grandchild!). 529 plans also provide flexibility. They allow for changes in the beneficiary depending on your family’s needs. In addition, funds can be rolled over to a Roth IRA if the beneficiary doesn’t use them for education. Contributions are easy and can be made through automatic deductions and payroll deductions. For information on Indiana’s 529 education savings plan, click here.

FORUM Sprout Account
FORUM also offers a competitive and unique savings plan for your child’s future. Our Sprout Account is a great way to save for future expenses such as college, trade school, a first car, private education, and more. Your money earns a competitive dividend rate, plus FORUM will match 10% of deposited funds per calendar year up to a $200 match. No minimum deposit is required to open the account, and contributions can be made by anyone at any time. Funds are available when the child turns 18. Plus, during the month of May, anyone who opens a new Sprout Account will be entered to win $250! For more information on Sprout and for official rules, click here.

Families often rely on a combination of sources to cover the cost of education. Even if your savings fall short, you and your child can explore financial aid (grants, scholarships, work-study jobs), student loans (federal and private), and side hustles or part-time work. It may also be beneficial to talk with a financial advisor to create a plan. Managing college expenses can be challenging but remember that you are investing in the future!