College Savings Made Simple: A Practical Guide for Parents

Between the cost of groceries, housing, childcare, and everyday expenses, many parents wonder how savings thousands of dollars for college is even possible. The good news is that you don’t need a perfect plan or a lump sum to get started. September is National College Savings Month, a reminder that small, consistent steps today can help create more options for your child’s future.  

During College Savings Month, financial and educational institutions across the country work to educate about the benefits of starting to save for college early, and tips to maximize those savings. Saving for college is important all year, but taking the month of September to focus and realign your strategy can help make it feel more manageable in the long run. 

Whether your child is just starting kindergarten or counting down the days to graduation, starting now can help you build momentum and make future education expenses feel more manageable. Keep reading to learn more about the different types of college savings plans, how they work, and tips for saving for college. 

How Much Does College Cost? 

We all want the best for our kids and their futures. And one of the best ways to set them up for success is to ensure they have access to education. 

According to College Board, the average cost of tuition and fees alone during the 2025-26 academic year were approximately: 

• $11.950: public college, in-state 
• $31,880: public college, out-of-state 
• $54,000: private college 

When you factor in housing, meal plans, books, supplies, and transportation, those costs can add up quickly. 

The good news? You don't have to save the full cost of college to make a difference. Every dollar saved today can help reduce the amount your child may need to borrow tomorrow. 

Choosing a Savings Strategy that Fits Your Family 

Many parents assume you need a specialized college savings account in order to start saving for education, but that’s not necessarily the case. Depending on your goals and timeline, several options may be worth considering. 

Traditional Savings Accounts, Simple and Accessible 

For families just getting started, a traditional savings account can provide an easy way to separate out your child’s college savings from the family’s everyday funds.  

Savings accounts can offer: 

• Easy access to funds 
• Low barrier to entry 
• Automatic transfer options 
• Easy tracking 
• A dedicated place to build savings habits 

For many families, the simplicity and ease of regular savings accounts make them an effective savings tool.  

Money Market Accounts: Savings with More Growth Potential 

For those looking for more balance between accessibility and earning potential, a Money Market Account could be worth considering. Money market accounts offer higher interest rates than traditional savings accounts, without locking your funds away for years. This account is a good fit for parents who want their money to work harder, while still having access to the funds.  

Certificates of Deposit: For Longer-Term Goals 

If your child is still several years away from college, a Certificate of Deposit may help you. Certificates of deposit can provide a guaranteed interest rate for a fixed period, making this ideal for families who: 

• Have a longer timeline 
• Don’t need access to the funds 
• Want predictable returns 

Because funds are committed for a set term, CDs are often used alongside other savings accounts, rather than as the only savings solution.  

Education-Focused Accounts: 529 Plans and Other Options 

Families looking specifically for education savings options may also consider 529 plans, Coverdell accounts, custodial accounts, and newer alternatives such as Trump Accounts. 

529 plans remain a popular choice because they offer tax advantages and can be used for many qualified education expenses, like books, room and board, and even certain trade school programs. They also offer great flexibility, including the ability to change beneficiaries, and in certain situations to roll unused funds into a Roth IRA for the beneficiary if the requirements are met.  

Education-focused accounts also have unique tax rules, considerations, and contribution limits, making it even more important to do your research and speak with a financial professional before making decisions. Consult with a tax advisor about deductibility.  

Build a Savings Routine that Actually Works 

The amount you save matters, but in long-term financial planning, consistency often matters more.  

To save consistently, consider: 

• Automatic transfers on payday 
• Monthly contributions, even if they’re small 
• Contributions from tax returns or bonuses 
• Birthday gifts or holiday money directed toward education expenses 
• Family contributions from relatives 

Just like building an emergency fund, saving a little bit each month can go a long way. Making savings automatic and contributing money from multiple places removes some of the pressure and helps turn saving into a habit.  

Small Steps Today = More Options Tomorrow  

Saving for college doesn’t require the prefect plan or an initial lump sum, but with choosing the saving strategy that works for you and taking that first step. 

Whether you’re welcoming a little one and looking toward their future, or your “little one” is navigating life as a college student, Academy Bank is here for you with financial solutions for the whole family.