Hi, there. I want to start saving money for my younger sibling so they can go to college easier.
I have financial aid and managed to get a scholarship to pay for a good amount.
I don’t spend a lot of money. So I can put some aside every month for the next 5 years. Wouldn’t the rates be pretty good to put money into?
Any reasons why I shouldn’t be trying this? Should I save for myself or something? The potential earnings seem like a better idea.
The main benefit of a 529 is its gains are sheltered from taxes. If you’re in high school or college, you probably don’t pay a high tax rate, if any. I like a 529, but I wonder if it would be simpler for you to save in a regular bank account. There’s nothing wrong with the 529, though, if it’s not too complicated to set up.