Getting your children excited for college is easy; getting them involved in saving for college is a whole different story. The truth is, your children need to learn saving strategies from you, the parents. High schools will hardly ever teach financial responsibility, so it’s your job to teach them, and teach them early. Here are a few tips to make sure your college-bound kid starts saving.

1. Start Soon

Most likely, your child will not have a significant source of income in high school. But, they should know that no matter how much they can save, the important is that they do save. Even saving $100 a month can yield significant returns over the long haul.

2. Stocks

A savings portfolio with a heavy investment in stocks is often the best way to establish long term savings. If you invest in stocks yourself, you can’t afford not to share this knowledge with your children. If you do not have money in stocks, you can learn with your child so that both of you increase your financial security at the same time.

3. Mutual Funds

Mutual funds may be a bit easier to handle than stocks. With mutual funds, a professional will handle your savings, which will save you time and also provide you with some peace of mind.

4. 529 Savings

A 529 Plan is an education savings plan designed to help families save for future college funds. For most plans, your choice of school is not affected by the state where you established the 529 Plan. 529 Savings Plans work a lot like 401Ks, investing your contributions in mutual funds or other similar investments and providing great tax benefits.

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