Danger: embarrassing Halloween wordplay lurks ahead

Fall is my favorite time of the year, and one of the biggest reasons is Halloween. I love the crisp air, the creative decorations in the neighborhood, and of course the kids in costumes. While fall brings pumpkins, parties, and candy, it also brings a new school year. That can serve as a chilling reminder of something truly scary: the looming specter of future higher education costs.

(Don’t say you weren’t warned about the wordplay. We’re just getting started…)

The Frightening Reality of College Costs

Let’s start with a number that’s scarier than any ghost story. The average annual cost of attendance at a four-year in-state public university exceeds $27,000 per year—and that number more than doubles for private colleges. Multiply that by four years (or more), and you could be staring down a total cost well into six figures. If you wait too long to start saving, you may find yourself facing a financial nightmare. 

No Tricks, Just Smart Treats

When it comes to saving for college, not all accounts are created equal. One of the best options available is a 529 college savings plan, like WA529’s GET Prepaid Tuition or WA529 Invest.

Here’s why 529 plans are a treat, not a trick:

• Tax-Free Growth: Your earnings grow tax-free, and withdrawals are tax-free when used for qualified education expenses.
• Flexibility: Funds can be used for tuition, room and board, books, supplies, and even certain K–12 expenses or student loan repayments. Recently, some credentialling programs were added to the list of eligible 529 expenses.
• Low Maintenance: You can “set it and forget it” with automatic contributions.
• Transferability: If a child decides not to go to college, you have several options. You can roll the funds into a Roth IRA account for the same child or transfer the funds to another family member’s 529 account.

Some states even offer additional tax benefits for contributing to their own state’s 529 plan. Compare plans to find the right one for you.

Avoid the Curse of Student Debt

Without savings, many families turn to loans—and that can lead to decades of horrifying debt. Americans owe over $1.8 trillion in student loans. That’s enough to send chills down anyone’s spine.

By saving early, you can reduce or even eliminate the need for borrowing. Think of your 529 account as a protective charm, guarding your future (and your child’s) from the long-term burden of debt. (C’mon now, don’t roll your eyes. That was a good one…)

The journey is less scary when you bring friends 

You don’t have to walk through the graveyard alone. When gift-giving events come around, encourage grandparents, relatives, and even friends to contribute to your child’s 529 account. Most 529 plans make it easy for loved ones to give gifts directly into your account.

When you believe in your children’s future, so do they

The National Association of State Treasurers (NAST) estimates that kids with an education savings account in their name are six to seven times more likely to continue their education beyond high school. The most powerful magic in your financial spellbook is time.

Starting to save when your child is young allows you to harness the power of compound growth—where your money earns interest on its interest. Even small, consistent contributions can grow into a healthy nest egg over 10 to 18 years.

Halloween Wordplay: The Final Chapter

This Halloween, while others are carving pumpkins and trading candy, take a moment to plan for something even sweeter—a financially secure future for your child. They may be years away from tackling their higher education goals today, but time moves fast. Starting now means you’ll be better prepared when that acceptance letter arrives.

So, grab your broomstick, banish the budget boogeyman, and take the first step toward overpowering the cost of higher education. (Don’t stop me, I’m on a roll!) When it comes to college savings, the only thing you should fear is not saving at all.