From health to happiness, there is a long list of worries for new parents. Yet, with the rising costs of tuition, paying for college is now one of the top concerns. Fortunately, local credit unions make the process as simple as possible by offering multiple savings opportunities. Here's a closer look at how to build an education fund for your little one. 

When Should You Start Saving for Your Child's College Education?

Today's children will face the highest tuition rates in history, as the costs seem to increase yearly. Currently, the average expense of a four-year institution in the U.S. runs over $26,000. For that reason, the earlier you begin to save, the better — even if you're not yet expecting but plan to start a family in the future. However, regardless of your child's age, every penny saved helps reduce their potential loan amounts, so begin as soon as you can even if you can only afford to contribute a few dollars per month. 

How to Do It Effectively

Set a Goal

The key to successful savings is knowing how much money is needed. Research the average cost of college in your region of the country, and don't forget to factor in non-tuition costs, like room and board, meals, and books. Once you have the overall goal in place, divide it up by the years — and months — left between now and your child starting college so that you know how much money you need to contribute to savings on a yearly and monthly basis. 

Choose Savings Plans

Local credit unions offer a variety of different methods to build savings. A standard savings account is a top choice because it offers dependable interest growth and no risk. Yet, you can also complement this savings style with low-risk investment opportunities, like a certificate of deposit and money market accounts. Such options are typically associated with higher interest rates than standard accounts, allowing you to grow the money faster. 

Be Consistent

Regardless of the savings method you choose, reaching the goal requires commitment. Make the fund a priority by moving money to it on a set schedule. Many banks and local credit unions offer automatic transfers from checking to savings accounts on set days of the months, which makes the process simple. If an emergency arises and you're unable to make a deposit, double up on the next date to help balance it out. 

Take the first steps toward your child's future with the help of North Jersey Federal Credit Union in Totowa, NJ. Since 1936, the local credit union has served the financial needs of residents across Passaic County. From checking accounts to personal loans, they're committed to providing personalized and friendly service. Visit the financial institution online to learn more about their savings options, and request assistance today at (973) 785-9200.