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Paying for College: How to Start Saving Early
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College Savings Plans
Planning for a brighter future.
No matter the school your kids end up attending, give them a financial head start by putting together a savings plan that will help cover the costs and open opportunities.
Start planningWhen should you start a college savings plan?
To give your family the most flexibility, starting early is key. With college costs continuing to rise, it's becoming more and more difficult to pay for higher education without turning to student loans—nowadays often six figures' worth. No matter where you're starting from, our financial advisors will put together a savings plan to help make sure you have what you need.
Get startedTypes of college savings plans
529 plans
Parents, grandparents, other family members, even friends can contribute money for college (elementary or high school, too). Any earnings will grow federal income tax-deferred, and many states offer tax deductions.
Coverdell Educational Savings Accounts (ESA)
Help cover the costs of college, even kindergarten through 12th grade. Like 529 plans, Coverdell accounts grow tax-deferred, however, there's a $2,000 yearly contribution limit and those with higher incomes might not be eligible.
Uniform gifts & transfers account
Known as UGMA/UTMAs, these custodial accounts let parents (and others) gift money to children. Earnings are taxed at the child's tax rate, and unlike a 529 or Coverdell account, you can use the money for college or anything else.
Whole life insurance
It's not a college savings fund, but a policy purchased for your child when they're still a baby will accumulate cash value over time (and grow tax-deferred) that you could use to help pay for education expenses.
Questions about college savings plan? We've got answers.
How can Northwestern Mutual help with a college fund?
When you work with us, we see a college savings plan as one part of an overarching financial plan. We'll look at everything you have going on—your goals like saving for college, your needs, and your priorities. With your big picture in focus, we'll create a tailored plan to help you save, grow your money, and make sure everything's protected.
Connect with an advisorThe Northwestern Mutual difference
Top 5 ranked investment service
We're one of the top U.S. Independent Investment Broker-Dealers.1
5.0M+ clients at Northwestern Mutual
The number of people we're proud to call clients, and who put their trust in us.2
164+ years strong through depressions, downturns, and pandemics
The number of years we’ve been there for our clients—through depressions, downturns, and pandemics.
Boost your knowledge on college savings plans
Ready to start saving for college?
Our financial advisors will help you create a college savings plan so your children can go to the school (or schools) they want.
It's easy to get started—no commitment, just a conversation.