How to start saving for higher education this College Savings Month

The video discusses the significant impact of costs on college choices, highlighting that many students choose in-state options due to scholarships and financial aid. It emphasizes the importance of early savings, with Maria Bruno from Vanguard suggesting automatic investment programs. The video explains 529 plans as a tax-efficient savings option and mentions alternatives like UGMA accounts and IRAs. It concludes with savings recommendations, advising to allocate about 3% of income annually for college savings.

What was a major factor influencing students' choice of college?

• Campus facilities

• Cost and financial aid

• Location

• Sports programs

According to the Education Data Initiative, what was the average cost of a bachelor's degree in the 2022-2023 academic year?

• $89,000

• $70,000

• $100,000

• $50,000

What percentage of parents are confident they will meet their college savings goals, according to a Vanguard survey?

• 16%

• 50%

• 34%

• 75%

Which savings plan is considered the best vehicle for education according to Maria Bruno?

• UGMA accounts

• General savings accounts

• IRAs

• 529 plans

What is a recommended percentage of income to save annually for college expenses?

• 1%

• 10%

• 3%

• 5%