This document discusses strategies for saving and investing for college. It begins by debunking common myths about college savings, such as that it is too early to start or better to borrow money. It then discusses trends in college savings, noting that half of families do not save at all. The rest of the document provides tips for effective college savings, such as starting early even with small amounts to take advantage of compound interest, using 529 plans for tax benefits, and understanding various savings vehicles. It emphasizes that investing yields better long term returns than borrowing and stresses beginning a savings plan as soon as possible.

1. Affording College Now
Module Three:
Savings and Investing for College
From the Author of
“College Without Ramen Noodles”
Saunders Learning Group, Newton, KS

2. Yes, You Can Go To College
Saunders Learning Group, Newton, KS
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3. 1. Why College
2. Cost of College
3. SAVING AND INVESTING
FOR COLLEGE
4. Financial Aid
5. Making College Affordable
Saunders Learning Group, Newton, KS

4. Myth Busting
Common College
Savings Myths:
Myth: “All college savings plans are the same.”
Fact: College savings plans differ is a variety of ways (tax benefits,
investment returns and flexibility)
Myth: “I’ll borrow money for college, I can better afford it later”
Fact: It will cost more to borrow and pay interest than invest and
earn interest.
Myth: “It’s too early to start saving for college”
Fact: The magic of compound interest is a power you want to use, starting
early and saving regularly will help make college affordable.
Saunders Learning Group, Newton, KS

5. Current Trends
• Half of U.S. families aren’t saving for college.
• 45% of those that do, use a savings account
• 29% use a 529 College Savings Plan
Saunders Learning Group, Newton, KS

6. When People Start Saving for College
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Major Life Events that Influence the start of College Savings
1. Birth of child – 34%
2. Child starts school – 24%
3. Learn about college cost from family – 20%
4. A gift of money from a relative – 15%
5. Advice from a financial advisor – 9%

7. Comparing College
Savings Accounts
Understanding the different tax benefits and features of savings
accounts for college can help you find the right one for your needs.
Source: Salle Mae, How America Saves for College, 2014
Saunders Learning Group, Newton, KS

8. Investing vs. Borrowing
Simple fact: It costs less to invest now than to borrow later.
When you borrow for college, you pay interest.
When you invest, you earn interest, potentially capital gains, dividends.
43% of high-income families and 61% of middle-income
families don’t have a plan to pay for college.
Source: Sallie Mae, How America Pays for College, 2014.
Saunders Learning Group, Newton, KS
A BURDEN FOR EVERYONE
Debt load for parents has
doubled in last 10 years to
$33,800 and for Students it’s
more than $29,000 (as of 2012)
Source: The Institute for College Access and
Success, December, 2013
IT TAKES A PLAN

9. Why Starting Early Saves
You know college costs are high, but when should you start savings
for your child’s college education? ASAP
Annual Savings Needed
1. Start at Birth = $2,121
2. Start at age 6 = $3,059
2. Start at age 12 = $5,101
Saunders Learning Group, Newton, KS

10. Start Early Start Small
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11. Starting Early
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12. Starting With Small Amounts
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13. The Case for Stocks:
Long-Term Investing
Starting a college savings plan early allows more time to hold
investments with potential for higher returns, helping to beat the
increase in the cost of college.
Source: J. P. Morgan Asset Management
Saunders Learning Group, Newton, KS

14. Invest More, But Pay Less
Some savings plans, like a 529 plan allow larger contributions that
can help you pay for much of college from your investment earnings.
Saunders Learning Group, Newton, KS

15. 529 Plans – Tax Efficient
A 529 plan has the potential to grow faster for college expenses than
a taxable investment earning the same returns.
Many state 529 plans offer state tax benefits in addition.
Saunders Learning Group, Newton, KS

16. Nine Reasons Families Might Not
Want to Save For College
1. Retirement Planning Should Come First
2. Education Doesn’t Have to Cost That Much
3. Students Should Invest in Their Own Education
4. You May Find It Easier to Pay for College When
the Time Comes
5. Hold Out for Graduate School as “the Carrot”
6. Look to Your Employer for Help
7. Get a Job First, Attend College Later
8. College Is Not the Only Route to Success
9. You can’t afford college (nearly 2/3s of parents can’t)
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17. QUESTIONS?
Saunders Learning Group, Newton, KS

18. Summary of Book
Saunders Learning Group, Newton, KS
College Without Ramen Noodles
A simple plan to Affording College
By Floyd Saunders
Available for all eBook readers
ISBN: 13: 978-0-9824019-2-7
Book summary: College Without Ramen
Noodles; A Guide to Affording College. This highly
readable guide provides college students and their
parents with dozens of ways to make college a
reality. In fact, use enough of these tips, and you
may keep college debt at zero.
Author Floyd Saunders has spent the last 20 years
helping his five kids get post-secondary education
using many of the options highlighted in this book.
Mr. Saunders even tells you some good reasons why
you might be better off with an alternative to a
college degree. Regardless of your circumstances,
this book offers valuable information as you
consider going to college

19. About the Author
Saunders Learning Group, Newton, KS
• Floyd Saunders is a writer with an extensive
background in the financial services industry,
having worked across the industry in retail,
commercial, investment banking, insurance, tax
preparation and financial planning.
• He has taught personal financial courses for
Baker University and has taught extensively for
the American Institute of Banking. He has also
taught at St. Mary’s College, Lake Tahoe
Community College and Mt. Diablo College.
• He is the author of: Figuring Out Wall Street,
College Without Ramen Noodles, Banking on
Mutual Funds and Annuities, Introduction to
Securities Markets, Investing in Securities and
Family Financial Freedom.
Author Contact
email: floyd.saunders@yahoo.com
Blog: www/floydsaunders.com
Twitter @floydsaunders
Sideshare: http://www.slideshare.net/FloydSaunders
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