Do You Need A Financial Advisor?

Finance Your Child’s Education – Stress Free

Finance Your Youngster’s Education– Tension Free

TODAY is the last day to join my team to qualify and earn that EXTRA $1000 BONUS! How would $2200 look in your bank account or wallet???? Don't miss out on this great opportunity,  let me help you! Contact me today 804.397.8933. SCGWraps@gmail.com #debtfr
Source: Flickr

In 2002, the average annual expense for a public university was $9,338. It is estimated that by 2017, the average yearly expense will certainly be $19,413. And that’s just for tuition and credit costs. Let’s not forget about room and board, books, food, clothing and additional activities.

With those figures it mind, it would be a good idea to start planning for your kid’s education today.

You already know about loans and scholarships but those aren’t the only choices. You do not need to go into debt! There are numerous options to assist you get ready for your child’s future.

529 Strategies

A 529 or qualified tuition program is a (federal) tax-free investment plan that allows households to save money for their childrens college educations.

Each state has its own 529 plan and you do not need to be a resident of a certain state to purchase that state’s strategy.

The 2 kinds of strategies consist of:

Prepaid Tuition Plans– These strategies enable you to take care of your youngster’s in-state tuition at today’s costs. These accounts are low-risk and they are guaranteed to match or go beyond in-state inflation. Nevertheless, these plans are typically limited to state citizens and the cost might not be covered if your kid chooses to go to an in-state personal university.

Education Cost savings Accounts- Or college cost savings plans are financial investment accounts whose value fluctuates with the market. They can be used at qualified public and private universities- there are no residency requirements. In addition, some strategies have high contribution limits per recipient and you can contribute up to $11,000 annually without paying a gift tax.

Savings Accounts

Even if your child only has a couple of years till it’s time to go to college, it’s never far too late to begin conserving. Determine where you can cut costs and put that money into a high-interest cost savings account.

For example, instead of purchasing 2 video games as a birthday present, purchase one and put the extra money into a savings account. What about Christmas and Hanukkah? Sure, it’s fun to open presents but I guarantee that the novelty of those presents will quickly be forgotten and later your child will thank you for making certain that their education was financed in a stress-free method.

Right here is a tip: search for a FDIC guaranteed bank that is based online. These banks provide greater rate of interest due to the fact that they don’t have the operating overhead of having branches. The work the same method as a regular bank except that there is no physical branch. You transfer money through your present checking account and receive regular monthly statements either by means of e-mail or through the mail.

Leave a Comment

Your email address will not be published. Required fields are marked *

Choose a Rating