The warming weather and chirping birds of springtime means something different for everyone. Many people take up a new project or revisit long-term goals, like gardening, visiting a local farmer’s market or improving finances for future expenditures. As a NEST 529 account holder, spring is a great time to review your contributions and consider increasing the amount you’re saving each month as the end of another school year approaches.
If you’re not already making regular contributions to your account, now is a great time to upgrade your savings strategy and potentially cover more of the rising costs of higher education. Here are three tips that could help achieve that goal.
Plan your contributions
When saving for a loved one’s future dreams, planning ahead is key to maximizing your NEST 529 account’s potential.
- Determine how much your loved one may need to cover some, or all, of their educational expenses.
- If you are able, plan to make regular contributions to your account. See how much of a difference monthly contributions could make.
- Decide what your investment risk tolerance is. Only commit to putting in what you feel comfortable with. Once you know that amount, find the best way to maximize your contributions.
It’s important to remember that every dollar you invest toward their dreams can make a difference. No matter the quantity, recurring contributions may have the ability to compound over time and could potentially increase.1 So, the sooner you start adding money to your NEST 529 account, the more time your savings can work for you.
Make saving money fun
Get your loved one involved in planning for their NEST 529 account. Show them the financial goals you’ve included for them in your budget. That way, they know they have your support to soar toward their dreams. Guide them through the ins and outs of running their NEST 529 account so they can understand the effect contributions are having for their educational future.
As a way to help your loved ones understand the importance of saving for college, we recently introduced Nester, the NEST 529 mascot. He’s here to lend a helpful feather to get kids excited about saving for their future.
The more you encourage your loved ones to talk about their dreams, the more enthusiastic they’ll be about the savings that are accumulating in their NEST 529 account.
Find more NEST 529 account information
To answer some frequently asked questions, we’ve launched a video series called, “Ask Penny,” featuring brief explainers on a number of topics related to NEST 529 accounts. There’s even more online information at your fingertips to help you manage your contributions to a NEST 529 account.
By taking time this spring to review your NEST 529 account, you can give your child the confidence boost to truly soar toward their dreams.