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  • Writer's pictureBeth & Tim Manners

CollegeBacker: An App for Your App

Yahoo Finance: "Saving for college could start on your phone. Higher education firm CollegeBacker, which helps students and families save for school, has developed a new mobile app that lets parents set up 529 college savings accounts. CollegeBacker: College Savings guides users through the process of creating a tax-free investment fund, letting them seamlessly link their bank accounts for one-time or automatic contributions, and allowing them to track the progress of their nest eggs. CollegeBacker said users save 43 percent more than traditional savers through gifts."

"The app also gives investing advice: 'Answer a few simple questions and CollegeBacker will help you choose the college savings plan investment option right for your child,' the description reads. "We only recommend a low-cost, highly-rated 529 plan and will help you choose a portfolio that automatically reduces risk as your child ages.' The rate of return on 529s depend on factors like where you live and the type of account you open but could hit around 7 percent annually and grow interest in the background."

"Another feature: no fees. The app makes money through voluntary tips instead of through the mandatory monthly fees that some other apps employ. Apps like CollegeBacker are becoming a big draw as college costs continue to rise. One year at a four-year college averaged $19,800 in 2018 and could nearly double by 2036. The outstanding student loan debt in the United States: more than $1.5 trillion."

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