Like most families, you're probably wondering how you can squeeze one more thing into your monthly budget. The truth is, thanks to a 529 college savings plan's tax benefits and compounding power, saving a little for college now could cost you a lot less than repaying loans when it’s time for college.1
Start small and stick with it.
One of the best college savings strategies is, simply, to start. The earlier you save, the more time your money has to potentially grow. This is the power of compounding—when your returns earn more returns and so on.
Let’s say, with an assumed annual return of 5%, you began saving $25 a month when your child was 1 year old (with an initial contribution of $250). At this saving rate, your 529 college savings plan could potentially have an account worth $8,639 by the time your child is college age.2
Managing to save even a small contribution each month is a far better plan than borrowing all of what you'll need when the time comes. Our College Financing Planner is an easy way to help you:
- Find out how much college could cost when your child reaches enrollment age
- See if you are on track to reaching a college savings goal
- Show how saving now can significantly reduce the amount you may need to borrow.
Get started with the College Savings Planner now.
It’s never too late
Remember — it’s never too late to save. Even a small contribution each month can cost much less than borrowing all of what you will need when the time comes. No matter how small the saving, you'll feel good knowing that you’re preparing for the future. So why not start today?
1 A plan of regular investment cannot ensure a profit or protect against a loss in a declining market.
2 This hypothetical example is for illustrative purposes only and assumes no withdrawals made during the period shown. It does not represent an actual investment in any particular 529 plan and does not reflect the effect of fees and expenses. Your actual investment return may be higher or lower than that shown. The loan repayment terms are also hypothetical.
Ascensus Broker Dealer Services is the distributor of the North Dakota College SAVE plan, Learn more about Ascensus Broker Dealer Services, LLC on FINRA's BrokerCheck.
For more information about North Dakota's College SAVE Plan (College SAVE), call 1-866-SAVE-529 (1-866-728-3529) or click here to obtain a Plan Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Disclosure Statement; read and consider it carefully before investing. Ascensus Broker Dealer Services, LLC (ABD) is Distributor of the College Save.
Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You should also consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 college savings plan(s), or any other 529 plan, to learn more about those plans’ features, benefits, and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.
College SAVE is a 529 plan established by the State of North Dakota. Bank of North Dakota (Bank) acts as trustee of College SAVE Trust, a North Dakota Trust, and is responsible for administering College SAVE Trust and College SAVE. ABD, the Plan Manager, and its affiliates, have overall responsibility for the day-to-day operations of the Plan, including recordkeeping and marketing. The Vanguard Group, Inc. (Vanguard) provides underlying investments for the Plan. The College SAVE's Portfolios, although they invest in mutual funds, are not mutual funds. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.
Investment returns are not guaranteed and you could lose money by investing in College SAVE. Participants assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state consequences.
Not FDIC Insured. No Bank, State or Federal Guarantee. May Lose Value.
Vanguard and the ship logo are trademarks of The Vanguard Group, Inc. Upromise is a registered service mark of Upromise, Inc. All other marks are the exclusive property of their respective owners. Used with permission.
© 2023 Bank of North Dakota. Ascensus Broker Dealer Services, LLC, Member FINRA. All Rights Reserved.
