$2.17 for Children or Grandchildren
Top 4 Ways To Save For College Education
Top 4 Ways To Save For College Education
Whether it’s years away or right around the corner, it’s never too late to start planning financially for college. Here’s what parents need to be doing right now to start saving for their kids’ college tuition...
It’s never too early to start saving.
Start saving money as soon as a child is born. If it’s past that point in time, then start saving now. Even small amounts can build up fast with a little diligence. Any amount is better than nothing.
1. Check into 529 plans.
Almost every state in the US offers tax-deferred investment accounts called 529 plans. These plans are designed to help parents save for higher education expenses for their kids. The investment options typically vary in each state, but some states may offer federal tax exemption plans as well as state tax exemptions.
2. Don’t open savings accounts in kids’ names.
Having savings plans in a child’s name can actually hinder them when they apply for college financial aid. According to many current financial aid requirements, if the student has money in their name, such as custodial accounts and trust funds, their eligibility may be reduced by as much as 25 cents on the dollar. This is compared to only 5% of the same funds owned by the parent. Keep in mind, however, that 529 plans are considered assets owned by the parent and they could prevent a kid from receiving more financial aid.
3. Know how and when to apply for assistance.
Know how financial aid works in order to qualify for the maximum amount possible. There may be legal ways to adjust income, savings plans, assets and debts to get the max assistance. Apply for assistance as early as a high school student’s sophomore year to ensure aid is available the first year of college.
4. Plan personally too.
Remember to protect retirement accounts and not take tax hits for exhausting them early to pay for college. Retirement money for parents is still a necessity. Use school resources and grants and loans to get through college tuition without using retirement funds.
You might also be interested in...
- 7 Steps To Choosing Health Insurance
- 8 Steps to Protecting Yourself Against Identity Theft
- Life Insurance You Can Afford
- Are Negative Habits Keeping You From Your Financial Goals?
- Best Retirement Tips for the Younger Generations
- Calculating Life Insurance Needs
- Can You Climb Your Mountain of Debt?
- Be Careful! You Just Might Get What You Paid For With These Cheap Life Services
- Eating On A Tight Budget
- Five Costly Disasters Your Auto Insurance May Not Cover
- Five Practical Steps to Repair Your Credit
- Five Ways to Cut Back on Your Grocery Bills
- Four Bad Financial Habits You Need To Break Now
- Getting Out of Debt: Start Taking Control of Your Finances Again
- Good Financial Habits
- How To Deal With Debt During A Divorce
- How To Get By On Social Security
- How to Host an Inexpensive Dinner Party
- How to Rebuild Your Credit and Increase Your Score
- Insurance Myths
- Is it Worth it to Get a Credit Monitoring Service?
- Making Life Transitions
- The Pros And Cons Of HARP Refinance
- Ten Essential Tips for Managing Your Personal Finances
- The Importance of Life Insurance You Can Afford
- Top Financial Mistakes That Can Spoil Your Retirement
- Top Ten Cheap Ways to Keep Your Kids Entertained
- What's the Point of Points?
- 4 Ways To Treat Rosacea Naturally
- 4 Natural Remedies For Varicose Veins
- 8 Ways To Grocery Shop On A Budget
- The Holidays On A Budget
- Tips For Women On Saving For Retirement
- Home Remedies For Heartburn
- 8 Great Uses For Tea Tree Oil
- The Best Natural Treatments For Sinus Sufferers
- Old Medical Hacks That Still Work
- How To Shop Healthy On A Budget
- The Best Home Remedies For Sunburn
- Charitable Giving On A Budget
- Money-Saving Tips That Actually Work
- 10 Ideas For Budget-Friendly Family Fun
- Can a Reverse Mortgage Save Your Monthly Budget?
- How to Get Free Money For College
- How To Have A Humble Holiday
- Top 4 Ways To Save For College Education
- Can you borrow money from a life insurance policy?
- Cashing Out a Life Insurance Policy
- Can I Sell My Whole Life Insurance Policy?