This post is authored by State Treasurer David McRae.
By
the time your child is nine years old, they are halfway to college. As
the father of a 10-year-old, that’s a pretty startling sentence to
write, but I think it helps put it in perspective for a lot of us
parents who think we have an eternity until their kids are old enough to
live independently.
That
said, many Mississippi parents don’t feel ready to start saving while
their child is still learning to read and write. Maybe there was an
unexpected medical expense. Maybe you have multiple children in diapers
or daycare. Or maybe your career just isn’t in a place where you feel
financially stable. Whatever the reason, many families delay saving,
leaving some to later ask themselves: Did I wait too long?
True,
the earlier you start saving, the longer your investments can grow tax
free. But even if your child is in high school now, there are still
options to make sure their college ambitions can move forward in a
financially responsible way.
First
and foremost, help your student succeed academically. Encourage them to
take advantage of advanced placement (AP) courses, which can count as
college credit hours. This will save both time and money in the long
run. Additionally, help them achieve the best ACT or SAT scores
possible. Then, research which schools offer scholarships or aid based
on their academic performance.
Second,
put away what you can now. Even if you’re starting late, four years of
saving is better than zero. Through College Savings Mississippi, you can
open a Mississippi Affordable College Savings (MACS) account for as
little as $25. Once you make that first deposit, your investments have
an opportunity to grow tax free. Set up a monthly direct deposit to help
ensure consistent contributions. To learn more, visit Treasury.MS.gov/MACS.
Finally,
invite your family to participate. Once you set up a MACS account,
almost anyone can contribute to it. Consider encouraging your child to
ask friends and family to make a contribution to their MACS account as a
birthday or holiday gift. It could also be used as an incentive for
academic performance or as payment for a job well done.
Whether your child is six or 16, take a few minutes this week to look into a College Savings Mississippi
plan. If you prefer to skip the online research, simply call my team at
601-359-3600 to get your questions answered. Even if you aren’t sure of
your child’s education ambitions at this point, know that a MACS
account is very flexible. It can be used on tuition at a two- or
four-year college, apprenticeship programs, books, room and board, and
much more. It can even be rolled over to another beneficiary, if you’d
like.
I
know it can seem like we have an eternity before our kids will leave
the nest, but whether we like it or not, that reality is often closer
than it seems.
Mississippi Treasurer David McRae is
the 55th Treasurer for the State of Mississippi. In this role, he helps
manage the state’s cash flow, oversees College Savings Mississippi, and
has returned more than $30 million in unclaimed money to
Mississippians. For more information, visit Treasury.MS.gov.
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