BENEFITS OF STARTING EARLY
Start small and stick with it
One of the best college savings strategies is, simply, to start. The earlier you save, the more time your money has to potentially grow. This is the power of compounding—when your returns earn more returns and so on. Managing to save even a small contribution each month is a far better plan than borrowing all of what you'll need when the time comes.
This chart shows the potential growth of contributing different amounts monthly over time.
*Chart assumes a hypothetical 6% rate of return compounded monthly and monthly contributions made at the end of each month. This chart is for illustrative purposes and does not represent the return of any specific investment options. Investment returns in a college savings plan will vary and may be higher or lower than this example. This illustration does not include fees and any fees assessed by the investment offering could have an impact on returns.
How it works
Tax-deferred growth
Saving now could help you pay less later.
With today's high college costs and relatively low interest rates, it can seem like a good idea to borrow everything you'll need for college when the time comes, rather than save what you can now.
Consider these hypothetical scenarios:
Scenario 1: Terry's birth parents start investing $100 a month into a 529 plan account right after Terry's birth. In 18 years (assuming a 5% annual rate of return), they could potentially save more than $35,000.1
Scenario 2: After exhausting federal student aid options, Terry has to borrow $35,000 to attend college. Based on a private student loan rate of 7%, Terry could be faced with a monthly payment of $406 for 10 years - $48,720 total.2
1The hypothetical example assumes college begins at age 18 and is based on a 5 percent rate of return compounded daily, and is for illustrative purposes only. It does not reflect an actual investment in any particular 529 plan or taxes, if any, payable upon withdrawal.
2This hypothetical example is for illustrative purposes only and assumes no withdrawals made during the period shown. It does not represent an actual investment in any particular 529 plan and does not reflect the effect of fees and expenses. Your actual investment return may be higher or lower than that shown. The loan repayment terms are also hypothetical.
How to get started
They have dreams, you have a plan.
Opening an Indiana529 Direct account is simple. You'll answer some questions about yourself, tell us about your beneficiary, choose your investments, and start contributing!
Readysave™ 529 app
Manage your account anywhere, anytime.
Regularly monitor your account
Check your account balance, transaction history, and investment allocations.
Contribute at your pace
Add money to your balance as a one-time or recurring contribution.
Gifting from friends and family
Easily invite friends and family to help give your savings a boost with Ugift®.
