Saving for college isn’t easy, but the earlier you start the better off you’ll be. For example if you save $60 a month for 17 years earning 8% per year, you will have over $25,000 by the time college begins!
There are several savings and investment strategies that can help you accrue money for college.
Planning Ideas
Below are some savings ideas that my help you better prepare for the task of funding your children’s college educations.
1. Assess your needs. In order to know how much to save, you need to estimate the future cost of tuition at public and private institutions. With education cost rising an average of over 8% a year for four-year institutions you must save with inflation in mind.
2. Save early and often. The sooner you begin to set aside funds for college, the less you will have to save. Allow your investments to grow along with your child.
3. Set up a systematic savings plan. Try to save monthly or quarterly, just as you would if you were paying off a car or a mortgage.
4. Keep a separate college account. The most popular are custodial accounts. These accounts ease the tax burden by allowing parents to shift some of their assets to the child at the child’s lower tax rate.
5. Involve the family. Children are more aware of family finances and accept responsibility when they are involved. It also becomes easier fotr you if the child is able to contribute to the fund.
Teach him or her to work and help contribute to their fund - they will value their education more.
The purpose of this article is to provide information of general interest to our clients and prospective clients. The information provided is general in nature and should not be considered complete information on any product or concept described.
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Evangeline could be reached at her marketing location at the Eagle Rock Plaza, Ground Floor (infront of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041, phone number (323) 356-3803 or (323) 254-6787. Her office provides the following products and services: insurance and financial services, income tax preparation, notary public, and resume preparation.
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Evangeline does not provide legal advice. Please consult with your lawyer regarding the divorce process. The purpose of this article is to provide information of general interest to our clients and prospective clients. The information provided is general in nature and should not be considered complete information on any product or concept described.
( Published on November 29, 2008 in Asian Journal Los Angeles p. C7 )
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