Starting early gives compound growth more time to work. See how even small, steady contributions can fund a significant share of college costs.
When you start early, time does a lot of the heavy lifting. Compounding turns small monthly deposits into meaningful college funds.
1) The power of time
Use a compound-interest calculator to see the difference that a few extra years can make. Try Investor.gov’s Compound Interest Calculator, then model monthly deposits with our Financial Calculators.
2) Make contributions automatic
- Set up recurring transfers into an FSB savings account through Online Banking.
- Increase the amount each year or whenever you receive a raise or bonus.
3) Choose the right mix for your timeline
- Longer timelines: Consider tax-advantaged 529 plans and age-based investment options.
- Shorter timelines: Favor guaranteed returns like FSB CDs and high-yield savings to protect principal.
4) Invite family to participate
Many 529 plans allow gift contributions, which can supercharge progress around birthdays and holidays. Review 529 rules and gift-tax considerations at the IRS 529 overview.
5) Review yearly and adjust
Revisit your target each year, check progress with our Financial Calculators, and tweak contributions as your child’s goals evolve.
CTA: Start today with a dedicated FSB savings account and consider a ladder of FSB CDs for short-term goals while you explore long-term options like 529s.
