Welcoming a bundle of joy this year, or celebrating another happy birthday for a child or children? Paying for college can loom over day-to-day life for families, but it doesn’t have to be so hard. Simple tips can help break down the challenge of college savings for everyone, with plenty of solutions available in 2026
Every Little Bit Helps
It’s easy to feel overwhelmed when it comes to paying a huge sum for something that feels a long way away. To call back to a classic metaphor, the journey of a thousand miles begins with a single step. Rather than being immobilized by anxiety, consider making small contributions to a savings plan at regular intervals, whether annually, quarterly, or monthly.
Invest Gifts Wisely
While many of us are familiar with the ease of a simple savings account, it’s better to let our money work for us. Cash gifts can be split into investments, for example. Investing in securities can help grow money and get more out of each individual dollar. That can especially help when making investments at longer intervals. This ensures no day goes by without the college savings plan moving forward a little bit more.
Get More From College Savings
While some may feel comfortable reaching out to a financial advisor to start a college savings plan, others may be a bit more hesitant. Whether working with an advisor or investing on their own, however, college savings planners have some powerful financial tools at their disposal. ETFs offer greater adaptability, tax efficiency, and transparency than mutual funds. They can easily be added to portfolios to meet specific goals.
Bond ladder ETFs are a type of ETF that really lean into delivering on specific client financial goals – like paying for college. Bond ladder ETFs invest in bonds and ladder them towards a certain date. Rather than just reinvesting the principal investors pay into those bonds, however, bond ladder ETFs payout the principal annually, offering a big cash injection in addition to monthly coupon payments. Investors can use those payouts to cover tuition payments, for example.
Together, ETFs like bond ladder ETFs, such as MUNA, the Northern Trust 2030 Tax-Exempt Distributing Ladder ETF, can act as powerful tools for meeting financial goals. Every little decision can help climb the college savings mountain, with funds like MUNA a place to start.
For more news, information, and strategy, visit the Bond Ladders Content Hub.
Disclosures:
ETF investing involves risk, and principal loss is possible. Shares of any ETF are bought and sold at market price (not NAV). They are not individually redeemed from the ETF. Brokerage commissions will reduce returns. The net asset value of the Northern Trust ETFs will decline over time as income payments are made to shareholders. Individual bonds carry an obligation to fully return principal to investors at maturity, however ETFs have no such obligation.
Before investing, carefully consider the investment objectives, risks, charges, and expenses. This and other information is in the prospectus and a summary prospectus, copies of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest.
Northern Funds Distributors, LLC, distributor. Northern Funds Distributors, LLC and FlexShares are not affiliated with Northern Trust.
All investments are subject to investment risk, including the possible loss of principal amount invested. Investments do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Not FDIC insured | May lose value | No bank guarantee
