College Saving Rules You Can Count On
It’s old news that college is outrageously expensive. The best college saving rules to pay for college is to start saving and investing early and often through college graduation. Just as with retirement investing, the sooner you start the better. If you’re a new parent, start today.
If your child is soon headed to college and didn’t start investing the day they were born, all hope isn’t lost. The key to achieving any financial goal is planning, saving and investing. There are a number of ways to do so.
College Saving Rules Accounts
Open a college savings account in your child’s name. There are a number of accounts from which you can choose and any bank, credit union or brokerage firm should be able to help you out. Accounts to consider are:
- 529 Pre-Paid Tuition Plan – lock in future tuition rates at current prices
- UGMA/UTMA – custodial account from which funds may be used for college expenses
- Coverdell Education Savings Account (ESA) – account that grows tax-free with $2,000 maximum annual contribution
- 529 Savings Plan – account that grows tax-free of Federal and most state taxes with a maximum account value (including contributions and investment earnings) between $230,000 – $310,00, as set by your state of residence
Each account has its own positives and negatives. Find additional information about each plan at CNN Money or by talking with an investment professional or accountant. If you have started late there are still plenty of ways to get money for your college bound student. Your diligence in saving and sourcing scholarships, grants and loans will pay off.
If you’ve already graduated college and have a burden of student loans to pay off, this is a great tool to pay off your student loans faster and cheaper. There are a ton of resources out there. Find which college saving rules works best for you in your current situation.
Other articles for you:
- 4 Ways to Manage College Expenses
- Extra Curricular Activities Can Help You Pay for College
- Clans Crushed By College Costs
If you want even more help with ways to go to college for less, other education options and a plan to prepare your high schooler, check out the FREE Money Conscious Student ebook clicking the below image.