When it comes to saving for college, start as early as you can. Starting early can make a difference in terms of money you can contribute and it's potential to grow over time, and your overall ending savings amount.
According to Fidelity's 2024 College Savings Indicator Study1, although most parents are concerned with inflation, the rising cost of college and saving for education, most agree the value of college education is worth the cost — and saving is their main priority.
How to start saving for college
As you start saving for college, keep in mind that there are options available to help cover college expenses.
Here are some tips to get started saving for college:
Establish a college savings goal
As you begin to save for college, it's important to know a rough estimate on how much you need to save or plan to aim towards. This amount can depend on a number of factors, including where your child may potentially continue their education (such as in-state, out-of-state, community college, or size of the institution). About 30% of parents are “not sure” about the full cost of college, while 55% guess the cost.2 Visit college websites to get a general idea of what it cost to attend and determine how much you may need to save.
Choose the college savings plan that's best for you
Once you're ready to begin saving, it's also a good idea to consider which savings options are best for you and your goals.
Some education savings accounts include 529 plans, Coverdell Educational Savings Accounts, UGMA/UTMA custodial accounts, and traditional savings or brokerage accounts.
Look for scholarships
Scholarships are financial awards that don't have to be repaid — free money! There are several types that range from merit or academic based, specific field of study, and athletic, to need-based, community service and special talents. According to the 2023 College Scholarship Statistics, over 1.8 million scholarships are awarded annually.3
Apply for aid4
The Free Application for Federal Student Aid (FASFA) is available to U.S. citizens who plans to attend college. It's used to figure out if and/or how much money can be offered. Financial assistance could be in the form of grants, loans, work-study programs, and scholarships.
Make regular contributions
Parents are still falling short on funding their intended college savings goals and more than 36% don't have a financial plan in place.2 It's a good idea to be prepared and keep college cost top of mind. It could be helpful to treat saving like a monthly bill (a priority), and contribute consistently as possible. You could also challenge yourself to increase the amounts over time.