Your Guide to Navigating College Expenses

Planning for college is a significant financial commitment, but with the right strategies, practical advice and tools to navigate the costs of higher education, you can reach your possible. Whether you’re saving for tuition, budgeting for living expenses, or exploring investment options, this guide has you covered.

1. Start with a High-Yield Savings Account

One of the simplest and most effective ways to save for college is to open a high-yield savings account. These accounts can offer competitive interest rates, helping your money grow faster while remaining easily accessible when needed.

• Why It Works: Your savings grow steadily over time, and the funds can be used for tuition, books, or other education-related expenses.
• Next Step: Automate monthly contributions to your account to build your fund consistently.
• Bank of Hawaii Tip: Explore our high-yield savings account options to get started today.

2. Consider a Certificate of Deposit (CD)

For medium-term savings goals, a Certificate of Deposit (CD) can help you maximize your returns while keeping your funds secure. CDs offer fixed interest rates over a specific term, making them ideal for saving for college expenses a few years down the line.

• Why It Works: CDs typically offer higher interest rates than traditional savings accounts, allowing your money to grow at a faster rate.
• Next Step: Choose a CD term that aligns with when you’ll need the funds, such as two or three years before tuition payments start.
• Bank of Hawaii Tip: Explore our range of CDs with terms that fit your savings timeline.

3. Maximize a 529 College Savings Plan

A 529 plan is a tax-advantaged savings account specifically designed for education expenses. Contributions grow tax-free, and withdrawals used for qualified expenses are also tax-free.

• Why It Works: These plans can be used for tuition, books, and even some room-and-board costs. Many states also offer tax benefits for contributing to a 529 plan.
• Next Step: Speak with a financial advisor to determine the right 529 plan for your family’s needs.
• Bank of Hawaii Tip: Learn more about how a 529 plan can help you prepare for the costs of college by connecting with one of our financial advisors.

Maximize your miles

If you’re planning to pay for some college expenses on a debit or credit card, consider using cards that offer cash back bonuses or extra points for purchases you have to make anyway. For example, if you need to buy plane tickets to visit your child at college or for your child to return to Hawaii during summer or winter breaks, consider paying with a card that offers airfare rewards, such as the Hawaiian Airlines® Bank of Hawaii World Elite Mastercard®—that way, your everyday purchases are pulling double duty by helping you earn free, or discounted, flights.

Access Your Equity

If you’re a homeowner, you may be able to apply for a cash-out refinance or a home equity line of credit (HELOC) to access money from the equity in your home.

Take the First Step Toward Reaching Your Possible

Saving for college may seem overwhelming, but with the right tools and a clear plan, you can make it happen. Ready to take control of college expenses? Open a high-yield savings account with Bank of Hawaii today and start building the foundation for success. Not sure where to start? Schedule a call with one of our local team members to discuss your savings options and open the bank account that’s right for you.

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