Choose the best way to save for your child's college education

Posted at 6:32 PM, Jan 14, 2019
and last updated 2019-01-15 09:19:29-05

BUFFALO, N.Y. (WKBW) — It's never too early to start saving for college, Jeff Boron, a certified college planning specialist said.

"It's a definitive timeline so it is not something we can procrastinate," Boron said. "It's going to happen, so plan for it."

It is not getting any cheaper. According to the college board, the average cost of tuition and fees for a private school in the 2017-2018 academic year was $34,740. At public colleges and universities, it was $9,970 for in-state residents and $25,620 for out-of-state students.

Boron says a common way for parents with young children to start saving is to start a 529 college savings plan with the state. The money in the account grows tax-free and when it's time to pay for college-- the money can be withdraw without tax penalties.

If you're like the 95 percent of Boron's clients and got a late start to creating a college savings account-- you still have options. Boron suggests looking into a New York State Savings plan where you can start putting away money and receive a tax deduction from the state.

Boron also suggests adding to a college savings account monthly-- based on parents finances. He sees parents adding 50-500 dollars a month and says he warns parents to pay themselves first before retirement comes knocking on the door.

"We always say you can take out loans for college but when you get old and nobody wants to hire you...it's tough to go to the bank and say I need a retirement loan," Boron added.

There is a tool, a saving for college calculator, to use to calculate how much college will cost in the future of when your child is ready to attend.