For parents awaiting the birth of a child, the majority of this time is usually spent preparing as much as possible for the arrival of the new baby. This includes all the basics; shopping for baby clothes, a crib, stroller, car seat, baby books, and all the other necessities that will be useful immediately after the baby is born. But with all the obvious preparation aside, it’s important for parents to think about other, more long-term plans that can be made during this time to ensure a bright future for their child. One of the most important investments you can make as a parent is towards your child’s education by opening a college savings account.
How to Get Started
It can feel overwhelming to consider paying for college even before you’ve welcomed your little bundle of joy into the world. With so many expenses to worry about along the way, your child’s college education may seem pretty far down the road. However, it’s in everyone’s best interest, especially your child’s, to start planning early and often. If you’re exploring the different types of college savings accounts and are looking to open one for an unborn child, we have some good news for you – there’s no need to wait for the birth of a baby to start saving!
A College Savings Trust makes it easy and convenient for expecting parents to immediately start investing in their child’s future education. All it takes is five minutes and $25 to easily open an account online and start saving right away. Of course, you’ll need to update the account with your child’s name and social security number as soon as you have them, but the lack of those details won’t prevent you from getting things set up and running. If you have any questions along the way, experienced trust officers are available to guide you through the process. You can also use our college savings calculator to see how much your investment will grow depending on your estimated deposits and planned monthly contributions.
Hit the Ground Running
There are several advantages to opening a college savings account before your child is born. One of the biggest benefits is that you will have everything set up and ready to go before this life-changing event occurs. Needless to say, the arrival of a new baby can make life a little hectic and unpredictable. It’s also a special time for parents to bond with their child and transition into a new lifestyle and routine. Because of this, new parents may find it difficult to spend these precious moments on the computer researching college savings plans, performing due diligence on college savings plan comparisons, and ultimately setting up an account. By doing all of the heavy lifting ahead of time, you eliminate the risk of waiting too long or forgetting to check this important goal off of your to-do list.
The other advantage is that you can start saving as early as possible. Starting to save for your child’s college education early can lead to you having more money available to invest and could help maximize your potential investment gains. The time between the birth of your child and the time your child goes to college can go by in the blink of an eye! Therefore, it’s incredibly important to get a head start when it comes to saving for college in order to make the most of the time you have to make contributions.
Once you’ve opened a College Savings Trust, the account will be managed by Prime Trust. This includes ensuring asset protection is in place, performing required regulatory tasks and, of course, investing the trust funds in accordance with your investment preferences. Prime Trust has a fiduciary duty to deliver solid investment returns to compound growth while taking into account your risk tolerance, time horizon, and other factors. Parents can feel secure knowing that their investment is in good hands with Prime Trust professionals ready to help guide you every step of the way.
After your baby’s account is set up, it’s time to start funding it. Naturally, you can do this yourself, but a nice perk of a College Savings Trust is that family and friends can also contribute to the account. If you’re looking for innovative ways on how grandparents can help with college savings, as well as a way for aunts, uncles, friends, and additional loved ones to contribute towards your new baby’s future, a College Savings Trust allows parents to easily share a personal link with others that allows them to make secure gift contributions towards the account. There is no better gift to give for birthdays, holidays, graduations, and all special occasions than the gift of education!
If you or a loved one is expecting, you’ve likely been thinking a lot about the future lately. How can you give this child the very best in life and a head start to success? By opening a College Savings Trust before the baby is born, you’ve already taken the first and most important step in securing a promising future for your child by giving them the gift of education.