---
title: "Preparing for Life Events with 7 17: Saving Money for College"
description: Saving money for college? Learn how to get started and maximize your savings with these tips.
image: https://blog.717cu.com/hubfs/Saving%20Money%20for%20College.jpeg
---

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- May 2, 2025
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# Preparing for Life Events with 7 17: Saving Money for College

![Optimistic student holding a notebook and folder, planning for college savings with financial aid, 529 plans, and scholarship opportunities.](https://blog.717cu.com/hs-fs/hubfs/Saving%20Money%20for%20College.jpeg?width=1160&height=580&name=Saving%20Money%20for%20College.jpeg)

 

It’s no secret that college is quite expensive, and figuring out how to pay for it can be overwhelming. Sure, you can get student loans, but those add up quickly, and paying them back plus interest for about 20-25 years is likely not the best scenario. It isn’t a loans-or-nothing situation — there are plenty of strategies you can implement when saving money for college.

 

 

## Take Control of Your College Savings Journey

Saving money for college isn’t something that you should put off until later — or worse,  not do at all. How much you save will directly impact your financial future because the difference between how much you save and the cost of tuition and other college expenses is how much you need to make up for with scholarships and loans.

 

You won’t have to pay back scholarships, but you will have to pay back loans, and it can take quite a long time to pay them — and the added interest — back. This can impact your credit score and ability to make other large purchases, such as a house. (We know that’s really far down the road, but you’ll need to think of the impact of potential loans now so you can make smart financial decisions.)

 

To avoid loans entirely or to reduce the amount you need to take out as much as you can, it’s important to look into the types of savings accounts you can contribute to and savings strategies that fit your current income level.

 

### Qualified vs. Nonqualified Expenses

First, it’s important to understand what the IRS considers a qualified educational expense.

 

Qualified expenses include:

- Tuition and fees for full- and part-time students
- Room and board, including on and off-campus housing, as long as rent doesn’t exceed the cost of staying on campus
- Textbooks and supplies
- A new computer, printer, and internet access
- Special needs equipment, such as wheelchairs, prosthetic devices, and transportation (Transportation isn’t usually included as a qualifying expense unless it is for those with special needs.)

Nonqualified expenses include:

- General and health insurance, even if required by your college
- Medical expenses
- Sports and activity fees
- Transportation to and from college, including airfare, bus fare, and gas

### 529 College Savings Plans

There are two main [529 college savings plans](https://www.nerdwallet.com/article/investing/529-plans-by-state): education savings and prepaid tuition. Education savings is more flexible, allowing you to use funds for various education-related expenses. Additionally, the earnings in the account grow tax-free, meaning income taxes aren’t due on the funds unless they’re taken out. Plus, federal income tax doesn’t need to be paid on withdrawals as long as the funds are used for qualifying education expenses.

 

There are some drawbacks to keep in mind with these plans, though. First, because funds are placed into investments, the funds are subject to market fluctuations, meaning the money in the account can increase or decrease in value. Additionally, rising tuition costs may outpace the amount you have in savings.

 

Prepaid tuition plans allow you to prepay some or all of your in-state public college education expenses. This allows you to lock in your tuition rate and minimize the risk of market fluctuations. However, a prepaid tuition plan can only be used at an in-state public college and may only cover tuition. Funds may be converted for use at an out-of-state or private college with a private college 529 plan, but not all private colleges sponsor these plans. 

 

### Youth Savings Accounts

In addition to 529 college savings plans, scholarships, and other ways of saving money for college, there’s one that’s quite flexible: a [savings account](https://www.717cu.com/personal/checking-savings/savings). Many banks and credit unions offer special deals to help teens build a solid financial foundation.

 

At 7 17 Credit Union, our [Youth Startup Savings account](https://www.717cu.com/personal/checking-savings/youth-accounts/youth-startup-savings) requires no minimum deposit to open and can earn a 7.17% annual percentage yield (the percentage of interest you’ll earn back into your account) on the first $1,000 deposited, and then the current going rate for all balances above that amount. These dividends are paid quarterly, allowing you to grow your savings quicker. 

 

## Saving Money for College: Smart Strategies for Future Students

Remember: Saving money for college isn’t just something for your parents to do. You can also contribute. Here are some ideas to get you started:

 

### Make a Budget

To [save money for college](https://www.717cu.com/resources/tools/calculators/college-savings), start by looking at your personal expenses (both necessary and unnecessary) and income to determine where you can cut down to put money away for college. 

 

### Get a Side Hustle

Consider part-time jobs, internships, and side hustles to set aside money for college. When you submit your [Free Application for Federal Student Aid](https://studentaid.gov/) application, it will also tell you if you’re eligible for a [work-study program](https://blog.717cu.com/resources/education/financial-education-blog/affordingcollege), which is a part-time job — generally on campus — where you can earn money and do work in your area of study.

 

### Explore Scholarships and Grants

Explore [scholarship](https://www.717cu.com/resources/education/scholarships) and grant opportunities to supplement your savings, and apply for as many as you can. These don’t need to be paid back, so apply to as many scholarships and grants as you’re eligible for. 

 

### Learn More About Finances

You’ll always need money management and financial skills, and this is especially important as you’re starting college and potentially on your own for the first time in a dorm. Learning how to manage your money before you’re actually on your own will help you feel more prepared and confident.

 

### Explore Other Options

While you want to save as much as possible, student loans can be a helpful option after you’ve exhausted your other options, such as scholarships, grants, and savings. With [7 17 Credit Union’s student loan marketplace](https://www.717cu.com/personal/loans/student-loans), you can compare your loan rates through a single form so you can make an informed decision.

 

 

## How To Prepare for College Expenses Beyond Tuition

There’s more to college than just tuition. You’re going to encounter a lot of other [expenses to budget for](https://blog.717cu.com/resources/education/financial-education-blog/common-college-expenses-to-budget-for), such as:

- **Textbooks:** These can be at least a few hundred dollars each, so make sure you’re prepared. Look for used editions when possible.
- **Housing:** Will you stay on or off campus? Make sure you research your options to find the cheapest option, keeping in mind that staying on campus may allow you to take advantage of a meal plan. You’ll be responsible for meals when living off campus.
- **Technology:** This includes a new computer, a new phone, internet access, and other tech expenses.
- **Personal expenses:** These include food, car, health and car insurance, and other expenses.

When you’re creating your plan to save money for college, make sure you’re coming up with a comprehensive strategy that accounts for all of these additional costs. Make sure you’re researching cost-saving techniques, such as:

- **Buying used textbooks:** Look in the school store, online, or on college bulletin boards for students selling textbooks. They may be highlighted from prior use, but in some cases, you’ll save hundreds of dollars.
- **Taking advantage of student discounts:** Many places offer student discounts for using their services, and museums, zoos, and art galleries may also offer student discounts. These may not be clearly advertised, so you may have to ask if one is available.
- **Minimizing unnecessary expenses:** Going shopping with friends and buying new clothing may be tempting, but evaluate if it’s truly necessary first.
- **Building an emergency fund:** This is a type of savings account that isn’t used except in an emergency, such as for medical, car, and other unexpected expenses.

 

## Start College Off Right

There are several resources available to college students to help them start college off right. Find out how much to save for college and start preparing by exploring 7 17 Credit Union’s [checking accounts](https://www.717cu.com/personal/checking-savings/checking) and [cost savings calculator](https://www.717cu.com/resources/tools/calculators/college-savings).

 

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Respectfully. Yours.

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7 17 Credit Union

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Phone: 800-775-7741

Routing Number: 241282849

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7 17 Credit Union is a local, community-minded credit union in Ohio offering valuable personal and business banking solutions including checking accounts, savings accounts, auto loans, mortgages, home equity loans, HELOCs, credit and debit cards and much more. Bank online, with our mobile app, or visit one of our conveniently located branches in [Austintown](https://www.717cu.com/about/connect/locations/austintown-branch), [Boardman](https://www.717cu.com/about/connect/locations/boardman-branch), [Canfield](https://www.717cu.com/about/connect/locations/canfield-branch), [Canton](https://www.717cu.com/about/connect/locations/canton-branch), [Cortland](https://www.717cu.com/about/connect/locations/cortland-branch), [Howland](https://www.717cu.com/about/connect/locations/howland-branch), [Hubbard](https://www.717cu.com/about/connect/locations/hubbard-branch), [Kent](https://www.717cu.com/about/connect/locations/kent-branch), [Ravenna](https://www.717cu.com/about/connect/locations/ravenna-branch), [Vienna](https://www.717cu.com/about/connect/locations/vienna-branch), [Warren (Downtown)](https://www.717cu.com/about/connect/locations/downtown-warren-branch), and [Warren (Larchmont)](https://www.717cu.com/about/connect/locations/warren-larchmont-branch).

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