College tuition cost, student loan, scholarship in USA. University graduate cap on American dollars money background. Education budget. 3d illustration
How to save for your child’s future
-
Asia Tabb
College tuition cost, student loan, scholarship in USA. University graduate cap on American dollars money background. Education budget. 3d illustration
Aired; April 7th, 2025.
Saving money is one of the most important habits a young person can develop—but for students and families alike, navigating the many savings options can be overwhelming. From traditional savings accounts to 529 college plans, understanding which tools to use and when can make all the difference in building a solid financial future.
To help make sense of it all, The Spark recently sat down with Sharon Eiswert, Director of Marketing and Deposit Strategy at PSECU, and Lee Fortenberry, an adjunct instructor in the personal financial planning program at Shippensburg University, for a conversation packed with financial wisdom.
“The most basic type of savings account available is your traditional savings account,” said Eiswert. “That typically has a relatively low interest rate and is easy to access. Having a savings account like that is a great way to start building your emergency fund.”
At PSECU, Eiswert noted, special accounts for youth and teens offer even higher savings rates—ideal for helping students learn good habits early on.
For those looking to grow their money a bit faster, Eiswert pointed to money market accounts as a smart next step. These accounts may require a higher minimum balance, but they often offer tiered interest rates.
“A money market account is a great tool to save for the longer term,” Eiswert said. “The more you put in, the more you can earn.”
Fortenberry added a word of caution about chasing interest rates at the expense of accessibility. “If having defensive money will prevent us from putting something on a credit card and paying 20% interest,” he said, “then a quarter of a percentage point difference [in interest] really doesn’t make a lot of sense.”
When it comes to saving for college, 529 plans offer both flexibility and significant tax advantages. “The money will grow tax-deferred, and as long as we’re using it for qualified expenses, it’ll be tax-free at distribution,” said Fortenberry.
Qualified expenses include tuition, room and board, books, supplies, and even laptops. And if a child doesn’t end up attending college? Don’t worry.
“If there are brothers or sisters, we can usually transfer funds,” Fortenberry said. “Or, if that child eventually has children of their own, the account can be transferred to them.”
Listen to the podcast for more information.
