The cost of education is rising in both the public and private spheres. Public education has gone up by 40% according to recent research. The trends are obvious. It’s fairly safe to conclude that the price of a college education is only going to climb.
It’s more important than ever, therefore, to plan ahead and work to make college affordable. There are college savings plans that exist for the sole purpose of doing just that.
If your family has a college savings plan , it allows you and your friends to fund a child’s education. There are tax benefits as well, to having these plans . You can also invest the money you are saving , to help it grow.
The contributors to the plan , e.g., the people who have provided the money for it, are the ones in control of the funds until the children are college age. Further, these plans require that the money saved be used only for expenses that are related to higher education. No taking out a few thousand and buying a motorcycle!
Don’t forget to contribute regularly. What seems like a lot of money now may not cover college costs in the future. To be sure to have enough you have to keep putting money in.
Before you decide on the right college savings plan for your family, do some research of the various plans available. What are the investment strategies? What are the tax benefits? How will it benefit the child when he or she reaches college age? The last factor should of course be given most weight.
State governments have college savings plans that are packed with benefits that are unusual. Check with your state’s website to see what is offered. Check online also for some national college savings plans .
Official websites are the ideal place for you to go for your research. They give easy access to all of the information you need to be able to compare across plans. You can also choose to consult with a financial advisor before you decide on the right plan for your child’s future.
Source by Val McQueen