September is National College Savings Month—a timely reminder for families to start or revisit their plans for higher education. With tuition costs rising steadily and the overall cost of living higher than ever, saving for college can feel overwhelming. The good news is that taking small, consistent steps now can make a significant difference later. Whether your child is just starting kindergarten or already in high school, it’s never too early—or too late—to prepare.

Start Early, Save Consistently
The earlier you begin saving, the more time your money has to grow. Even modest contributions can accumulate into significant savings over time, thanks to the power of compound interest. Setting up automatic transfers into a dedicated account—whether it’s $25, $50, or more per month—helps make saving a habit. Think of it like planting seeds: the earlier you plant, the stronger the tree will grow.

529 Plans: A Smart Choice
One of the most popular tools for college savings is the 529 plan, a tax-advantaged savings account designed specifically for education expenses. Here’s why families turn to them:

• Tax Benefits: Earnings grow tax-free, and withdrawals for qualified education expenses are not taxed.
• Flexibility: Funds can cover tuition, books, fees, housing, and even some K-12 tuition expenses.
• Control: The account owner stays in charge, even after the beneficiary turns 18.

Tips for making the most of a 529:

• Start contributions early, even if small.
• Take advantage of automatic deposits.
• Ask family members to consider contributing as a gift for birthdays or holidays.

State-Specific Benefits
In addition to federal tax advantages, many states offer their own incentives for using a 529 plan. Some states provide tax deductions or credits on contributions, while others may offer matching grants. To find out what’s available in your state, visit your state’s official 529 plan website (Ohio or PA) or meet with an Andover Bank Financial Consultant who specializes in College Savings. Knowing your state-specific benefits can help you maximize your savings and reduce your tax burden. Be sure to consult your tax advisor though.

Other Tools and Strategies
While 529 plans are a top choice, families have other tools to consider:

• Coverdell Education Savings Accounts (ESA): Similar to 529s but with lower contribution limits.
• Custodial Accounts (UGMA/UTMA): Assets are held in the child’s name but can affect financial aid eligibility.
• Scholarships & Grants: Encourage your child to start exploring scholarship opportunities early. Many awards are available long before senior year of high school.
• Employer Benefits: Some workplaces now offer 529 contributions or student loan repayment assistance as part of their benefits package—worth checking during open enrollment.

Making Saving Manageable
With higher prices at the grocery store, gas pump, and everywhere in between, it can feel hard to add one more financial priority. But saving for college doesn’t have to be overwhelming. Here are a few practical steps:

• Round Up Your Savings: Apps and bank programs that round up debit card purchases to the nearest dollar and save the difference can quietly build college funds.
• Redirect Small Windfalls: Use tax refunds, bonuses, or even the money saved from cutting unused subscriptions to boost contributions.
• Involve Your Student: Even part-time jobs or summer earnings can go directly into a 529 or savings account. This builds both responsibility and savings.

Resources for Families
National College Savings Month is also a good time to explore the many free resources available:

• Your State 529 Plan Website – For tax benefit details and contribution rules.
• College Savings Calculator – Tools like those on SavingForCollege.com can help you project future costs and savings needs.
• High School Counselors & College Planning Offices – Often overlooked, they can connect families with scholarships and planning workshops.

Preparing for college doesn’t have to mean financial stress. By starting early, saving consistently, and taking advantage of the right tools, you can give your child a strong start without sacrificing your own financial future. National College Savings Month is the perfect opportunity to take that next step, whether it’s opening a 529 plan, increasing your monthly contribution, or simply sitting down as a family to make a plan.

Small steps today will lead to big opportunities tomorrow.