There are a lot of reasons to worry as a parent. Are the kids eating enough vegetables? What is this TikTok challenge? Why is this pillow sticky? But as they near college age, the worries feel more real. Do they understand how to budget? Will they get into their dream school? And if they do, how will we pay for it?
If your own experience with college-related bills has left you riddled with anxiety for your kids, you’ve got every reason to feel that way. Student loans account for the largest form of debt in the United States at $1.7 trillion, leading young adults to a serious financial struggle. Even those who land excellent jobs often still live paycheck-to-paycheck if they’re saddled with student loans.
A recent study conducted by U.S. News found that college graduates from the class of 2019 who carried loans to receive their education borrowed an average of over $30,000, a 26% increase from one decade prior. And with the cost of living rising in many cities but wages remaining the same, college-educated students are seldom reaping the rewards for their commitment to mastering their fields of study.
But what if your children didn’t need to live under the weight of student loans? What if you were able to save for college for them in a meaningful way?
Even the Best-Laid College Savings Plans Often Go Awry
Avoiding becoming another student loan statistic isn’t easy. To save the average of $30,000 that students in the United States borrow to pay for college would require putting away at least $1,765 per year for each child—starting at their first birthday. And while it sounds feasible, unpredictable years like 2008’s recession, 2020’s pandemic, or family emergencies could quickly throw you off track.
Save for College Strategically
Putting money into a savings account is a great idea any way you do it, but if you’re strategic with your contributions, you can actually reap bigger rewards—in this case, for your kids. One way to relieve some of the stress is with a CollegeBacker account, which allows for tax-free contributions from anyone who wants to gift funds and offers investment incentives to help your account grow.
Try rolling an existing 529 plan or FDIC-insured Backer Safe into a CollegeBacker account (it’s easier than it sounds) to boost your savings by earning cashback-style rewards every time you shop with any of the 125 partnered retailers. Buying groceries from Walmart or appliances from Best Buy can land 5% of your purchase in your kid’s CollegeBacker account. So back-to-school necessities, soccer gear from Adidas, and even birthday party supplies from Party City could contribute to your children’s debt-free future.
Anyone Can Pitch In
Forbes recommends saving as much as $550 per month from the start of your child’s life to prepare them for higher education without debt. That can be a daunting amount for many families, but this is where that whole “it takes a village” thing can really shine. Consider using CollegeBacker’s customized gifting page to welcome donations from friends and family in celebration of baby showers, bar mitzvahs, quinceaneras, and sweet sixteen, or any other occasion you choose.
If you’ve already gotten a jumpstart on saving, you can still open a CollegeBacker account to accept contributions from generous gifters once you roll your savings over.
Help Kids In Need When You Save For Your Own
A CollegeBacker account is all about saving, so they allow users to choose their own fee. Most families opt for a $5 monthly payment, but you can choose to commit as little as $1 to get your savings started for as many children as you have. Whatever payment makes sense for you, 1% of it will be donated to low-income families to support the college education of kids struggling to save.
Start saving for your children’s debt-free future today with a little extra help. It all starts with a five-minute guided setup and includes robo-advice along the way. When you open your CollegeBacker savings account through this offer, you’ll get the first month free.
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Byline: Violet Shepard
