Tuesday, August 13, 2013

Securing Your Kids' College Education

When you are a parent, what comes to mind is securing your kids' future. But most often than not, you disregarded the fact that you have to start saving while your kids are small. Time flies so fast, that your crawling toddlers will soon be off to college and that only means pulling of resources.


What I mean here is the cost of college education.  It is being discussed everywhere and it's hard to miss. Every year, college education cost is elevated, not the other way around.  No longer should you be complacent that you will be able to handle the costs without sorting some plan. It is always secure to get one of those College Savings Plans.

Apparently, with the name alone it suggests a savings plan for the whole family that will put up to saving up early and conveniently for college education. It is an investment for the kid's future.

When you start saving when your child is newly born, you will have 18 years of accumulated savings. Also, this money grows since it has an investment arm usually attached to the stock market.  It only states that, your money will gain interest depending on how the market grows.  This arrangements will surely provide you lesser financial burden once your child goes to college.

Moreover, you also get a tax benefit because the money grows tax-deferred. In fact, you may be eligible for tax-exceptions even when you do get your money out to pay for your child’s education so you don’t have to pay any federal tax on the gains.  You get another tax break even your state may have already exempt your money from local state tax. 

As the author of the plan, you can basically decide who the money will go to.  Since it is not a trust fund, even your children are of legal age already, you still hold the rein of the plan. You can also create as many plans as you have children to guarantee your kids' educational finances.

No comments:

Post a Comment

Blogger Templates