The time to start saving for college is now - FOX13 News, WHBQ FOX 13

The time to start saving for college is now

Posted: Updated:
ATLANTA -

A new report shows that many families have not been saving for college. According to Sallie Mae, only half of American parents having been setting aside money, and that figure has dropped in the last two years.

No matter where you go for financial advice, when it comes to saving for college, experts say the same thing -- start saving now!

"If you haven't started, start. Do it tomorrow," said Laura Preston

Preston is no financial expert. She's is a mother to an 8-year-old daughter and a 12-year-old son. She started saving when they were just over a year old with a 529 plan.

"So, what we did with both of those programs is just started an automatic deduction that comes out each month," said Preston.

A 529 plan is an education savings plan operated by states that have tax advantages designed to help families save for college.

Financial guru Dave Ramsey supports 529's, but he says choose wisely. There are two dozen states that allow anyone to enroll in their plan no matter where you live. He and other experts say an education savings account will allow you to contribute up to $2,000 a year if you make less than $200,000 a year.

Preston uses the Upromise 529 program, which allows her everyday purchases to go toward her college savings.

"We have a Upromise Mastercard that we use, so that every time that we use that card, a certain portion  of the amount that we spend on that card is put into this Upromise fund. And then you can link another 529 plan up to it, so when the money transfers, then it's starting to grow," said Preston.

If college for you kids is sooner than later, it's not too late to contribute to a 529. But, you also need to take a look at taking on a part-time job and less expensive college tuition. Ramsey and other experts say whatever you do, don't take on huge amounts of debt.

For more information on 529's and tips for saving now, visit the links listed below:

Dave Ramsey's College Guide

Saving for College

Suze Orman - Paying for College

  • Good Day ArchiveMore>>

  • Good Day Atlanta

    Recipes: A healthy take on Southern favorites

    Recipes: A healthy take on Southern favorites

    Tuesday, September 16 2014 12:39 PM EDT2014-09-16 16:39:34 GMT
    We challenged chef Curtis Aikens to lighten up two Southern classics, starting with sweet potato pie.Which usually involves a couple of sticks of butter, loads of sugar and buttermilk.
    We challenged chef Curtis Aikens to lighten up two Southern classics, starting with sweet potato pie.Which usually involves a couple of sticks of butter, loads of sugar and buttermilk.
  • FOX Comedies Return To Tuesday Night

    FOX Comedies Return To Tuesday Night

    Tuesday, September 16 2014 9:36 AM EDT2014-09-16 13:36:32 GMT
     Two of the hottest comedies on FOX return Tuesday night, so get ready for some new laughs with old friends!   First up, "New Girl" is
    Two of the hottest comedies on FOX return Tuesday night, so get ready for some new laughs with old friends! First up, "New Girl" is back for a fourth season, and cast members say expect a bit of a "reboot" of the series. What does that mean? Star H
  • Get Ready To "Rock" At Johns Creek Music School

    Get Ready To "Rock" At Johns Creek Music School

    Tuesday, September 16 2014 9:01 AM EDT2014-09-16 13:01:43 GMT
    It's a unique music school where kids jam out to The Beatles and Green Day, and learning to play an instrument also means learning to play with others.
     It's a unique music school where kids jam out to The Beatles and Green Day, and learning to play an instrument also means learning to play with others. There are nearly 150 School of Rock locations around the world, and now there's one in Johns Creek.
Powered by WorldNow

WHBQ-TV | Fox 13
485 S. Highland St.
Memphis, TN 38111

Main Station: (901) 320-1313
Newsroom: (901) 320-1340

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices