Making a contribution to your college savings plan each month – even as little as $50 – will go a long way toward funding a college education, especially when it is invested wisely and consistently over a long period of time. That’s where mutual funds can help.
Think of it If you start saving soon after the birth of your child, you will have 18 years to generate revenue on your investment. With this long time frame, you may want to invest your savings more aggressively by including stock mutual funds. This type of investment has historically shown much higher returns over time than alternative vehicles that are more conservative; however, the risks are also higher.
Depending on your financial situation and comfort level, you may also want to consider more steady investments products, such as bank savings accounts, bonds, CDs, and bond funds.