Money Saving Monday: College Savings Plan

I thought my husband was crazy when he mentioned we should start a college education plan for our 2 month old baby boy.  Really?  Already?  I figured we could think college when he was at least potty trained or something.  But no, my husband said, "Hey Dave Ramsey says it's a good idea, we should do it."  So Dave Ramsey won.

We started a Utah Educational Savings Plan for our 2 month old.  Honestly, I didn't know they even had this program.  The more we researched it, the better this idea sounded.

I think the main reason we started this was because it will save us down the road.  I had just planned on taking a loan out for college later when they were that age, but why?  Why not have it all ready started for them?  Brilliant idea!   

There are so many different options for you to do with this program, that it may get a bit overwhelming to the point you won't even give it a try.  So let me tell you what we do.

First you need to create an account.  Follow the steps until it is created.  You will need to figure out what investment plan you want.

You can look at the chart on this link.  It shows different investment plans you can do.  We do the Option 7- Diversified A Plan.  So it starts out all as stocks until our son is 7, then adds bonds, then it eventually becomes 100% FDIC insured.   

We put $5 from every pay check into our son's educational plan.  Which is roughly $20 a month.  It doesn't seem like a lot, but over time it will add up fast.  That's it! 

I have to say, my husband was right.  This definitely was a great idea.  I can already breathe a little easier knowing that our son's first little bit of college will be paid for, and it won't add any stress when that time comes. 

Most states have educational plans.  You can check for one in your state!