As the cost of college continues to rise, parents are eager to start saving early and strategically. That’s where we come into play. We’re here to help you plan and save for all of life’s biggest goals. Whether you’re 18 years away from sending your infant off to college or a few years out from packing up your teen, it’s always a good idea to speak with a financial expert. We work with a wide range of clients and can help you navigate saving for college no matter where you’re starting from.
Here are a few things to consider.
529 College Savings Plans
529 plans are a way to save money for the cost of education without that money being taxed while you save. And, as long as the money saved is used for qualified education expenses, it won’t be taxed when it’s withdrawn for use.
The earlier you can start putting money into a 529, the longer it has time to grow and reap all the benefits the plan offers. But even if college is just around the corner, a 529 plan can still be a great tool.
Build Financial Literacy with Bank Accounts for Minors
Saving for education goes beyond tuition and room and board. It’s helpful for your child to have an account of their own to help them navigate discretionary spending.
Junior Savers Statement Savings Accounts (1)
From Treat Dollars (2) to spend at local favorite restaurants to year-round clubs and activities, we try to make saving fun while instilling healthy financial habits. Best of all, Junior Savers accounts grow with children. (No minimum to open. For customers under age 22. $200 daily minimum balance to avoid a $5 monthly maintenance fee once the Junior Saver turns 22.)
“As a banker, it’s rewarding to see how financial education shapes the future of our young children. I’ve had the opportunity to teach financial literacy classes to school-age children in the community,” says Vice President and Branch Manager at Hawthorn Woods Community Bank (HWCB) Rosemarie Madulara. “Our team loves to share their knowledge with the children as they grow into Student Checking accounts in middle school.”
Young savers can participate in our Junior Savers Club (3) and Teen Banking Club (3). Think pizza parties, holiday meet and greets, financial literacy opportunities — our clubs have it all.
Student Checking
Your teen can receive a debit card of their own while you maintain parental access by setting spending limits, direct-depositing gifts or allowances, tracking account usage, and more. (No minimum deposit to open, and no minimum monthly balance or monthly maintenance fees. These accounts are available to students 13 to 25 years of age. Applicants under age 18 may be required to open an account jointly with a parent, legal guardian, or other adult.)
Get started! Stop by HWCB and see how you can set your child up for a successful college experience.
Publisher's Note: This article was provided by Hawthorn Woods Community Bank. For the Junior Savers Statement Savings Account (1), child(ren) must be accompanied by a parent or guardian & present valid Social Security number(s) at account opening. Fees may reduce earnings. We may change the interest rate on your account at any time. The Earning Treat Dollars (2) program allows youngsters to Earn 2 Treat Dollars when opening the account, 1 Treat Dollar for every $25 deposited with a maximum of 7 Treat Dollars per visit, and 1 Treat Dollar when a Junior Saver celebrates a birthday. The Junior Savers/Teen Banking Club (3) provides memberships for customers under age 22. Hawthorn Woods Community Bank is a branch of Barrington Bank & Trust Company, N.A. MEMBER FDIC. EQUAL HOUSING LENDER.
"Our club for adolescent account holders who want to learn about financial literacy, and their community, through enjoyable activities."