Before college

Ready to get a head start on saving for college? Here are five strategies to help keep you on the right track.

Understand college costs

Think college is too high-priced? Calculating the cost of college depends on which school you choose and how much financial aid you'll receive. Tuition and fees take the lion's share of your income, with annual costs rising 6%—more than twice the rate of inflation. Start comparing public, private, community and in- and out-of-state schools to get a ballpark figure on cost. Then you can start to estimate how much you need to invest based on your timeframe and budget.

Try our College Planning Calculator

Before you go into sticker shock, here's good news: Many families rely on a number of sources to help pay for college.

View the Paying for College infographic to see how they typically do it.

Tip: Ask friends and family to get involved

Instead of giving a traditional gift, grandparents, relatives and friends can contribute to a child's college investing account on holidays, birthdays and special occasions. You can even get your children involved in saving by contributing a portion of their allowance or job earnings toward their future.

Start saving now

With college costs on the rise, saving now can pay off later. That's because starting early allows more time and opportunity for your investments to grow — and can reduce the amount you have to borrow. Setting aside even a little can make a big difference in helping you meet the future cost of college. Remember, it's never too soon or too late to start saving. Every dollar saved is one less you may need to repay with interest.

The math behind saving for college

7 Ways to Save for College

Tip: Put your savings on autopilot

Make contributions directly into your savings or investment account with automated bank transfers or payroll deductions so you never have to worry about missing a payment.

Explore 529 plans and custodial accounts

Whether you're investing for a child, grandchild, family member or even yourself, you can find the right account to pursue your college planning goals.

529 College Savings
Plans

A tax-advantaged investment plan operated by each state with high contribution limits to help you pay for college expenses

Explore 529 college savings plans

Custodial Accounts (UGMA/UTMA)

A taxable account opened on a child's behalf that can be used for education or any expense that benefits that child

Explore custodial accounts

Compare college savings plans

Balance college savings with other life priorities

Investing in your child's education is a goal that should be set with other life priorities, like retirement. Instead of tapping into your nest egg to cover tuition costs, consider all funding sources to avoid jeopardizing your own financial health.

Balance long- and short-term goals

Ready to get started?

Open an account

888.637.3343

Find a local Merrill
Financial Solutions Advisor

Account choices

529 college savings plans

Custodial accounts (UGMA/UTMA)

Compare college savings plans

Ready to get started?

Open an account

888.637.3343

Find a local Merrill Edge
Financial Solutions Advisor™

Looking for a different approach
to investing?

Get a professionally managed portfolio
aligned to your goals that's built,
monitored and rebalanced by Merrill
investment professionals with the option
to work with a licensed advisor.

Learn more about Guided Investing

Please remember there's always the potential of losing money when you invest in securities. Before you invest in a Section 529 plan, request the plan's official statement from your Financial Solutions Advisor and read it carefully. The official statement contains more complete information, including investment objectives, charges, expenses and risks of investing in the 529 plan, which you should consider carefully before investing. You should also consider whether your home state or your beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds and protection against creditors that are only available for investments in such state's 529 plan. Section 529 plans are not guaranteed by any state or federal agency.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

MAP5269052-12092023

I'd Like to

Discover Merrill

Contact Us

888.637.3343

Connect with us:

Unlimited $0 Trades

With Merrill Edge Self‑Directed, get unlimited free online stock, ETF and option trades with no trade or balance minimumsFooter footnote ^b

Options contracts and other fees may applyFooter footnote ^a

Open an account with Merrill Edge Self-Directed

Footer footnote

Other fees may apply. Free and $0 means there is no commission charged for these trades. $0 option trades are subject to a $0.65 per-contract fee. Sales are subject to a transaction fee of between $0.01 and $0.03 per $1,000 of principal. There are costs associated with owning ETFs. To learn more about Merrill pricing, visit our Pricing page.

Footer footnote

Merrill waives its commissions for all online stock, ETF and option trades placed in a Merrill Edge^® Self-Directed brokerage account. Brokerage fees associated with, but not limited to, margin transactions, special stock registration/gifting, account transfer and processing and termination apply. $0 option trades are subject to a $0.65 per-contract fee. Other fees and restrictions may apply. Pricing is subject to change without advance notice.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.

The performance data contained herein represents past performance which does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance information current to the most recent month end, please contact us.

Net Asset Value (NAV) returns are based on the prior-day closing NAV value at 4 p.m. ET. NAV returns assume the reinvestment of all dividend and capital gain distributions at NAV when paid.

Market price returns are based on the prior-day closing market price, which is the average of the midpoint bid-ask prices at 4 p.m. ET. Market price returns do not represent the returns an investor would receive if shares were traded at other times.

Returns include fees and applicable loads. Since Inception returns are provided for funds with less than 10 years of history and are as of the fund's inception date. 10 year returns are provided for funds with greater than 10 years of history.

Before investing consider carefully the investment objectives, risks, and charges and expenses of the fund, including management fees, other expenses and special risks. This and other information may be found in each fund's prospectus or summary prospectus, if available. Always read the prospectus or summary prospectus carefully before you invest or send money. Prospectuses can be obtained by contacting us.

Expense Ratio – Gross Expense Ratio is the total annual operating expense (before waivers or reimbursements) from the fund's most recent prospectus. You should also review the fund's detailed annual fund operating expenses which are provided in the fund's prospectus.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (Form CRS) (PDF).

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp").

Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation ("BofA Corp.").

Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:

Are Not FDIC Insured

Are Not Bank Guaranteed

May Lose Value

Are Not Deposits

Are Not Insured by Any Federal Government Agency

Are Not a Condition to Any Banking Service or Activity

Merrill A Bank of America Company Merrill A Bank of America Company

MAP5676695-05112024

(TX11********2V)

Before college

Understand college costs

Tip: Ask friends and family to get involved

Start saving now

Tip: Put your savings on autopilot

Explore 529 plans and custodial accounts

529 College SavingsPlans

Custodial Accounts (UGMA/UTMA)

Balance college savings with other life priorities

I'd Like to

Discover Merrill

Contact Us

Unlimited $0 Trades

529 College Savings
Plans