4 Surefire Ways to Save For Your Child’s Education
As your child grows up, you can’t help but to notice that everyday expenses grow high as well. You may fear that one day would come when working hard would no longer be adequate to sustain your child’s needs. Every parent like you only wants nothing but the best for their child. You dream of sending your child to the best university to have the best education, so that your child would be the best he/she could be. Yes, the economy may be unpredictable and could be threatening, but here are several pieces of advice to give you the peace of mind that you deserve:
Start Saving Early
The earlier you think about the future, the more prepared and happy you are as it comes. Start small if you have to and try to increase the amount you save each month and be specific about it that it would be your child’s future education. Always keep your goals in your mind, and do your best to stick to it.
Consider 529 Plans
Savings doesn’t have to be restricted to a bank account. If you’re aiming for long-term goals, considering educational plans may be a great idea. There are two types of 529 plans:
- A prepaid tuition plan allows you to purchase future education credits at today’s tuition prices. Credits can generally be used at any educational institution accepting federal financial aid.
- A college savings plan resembles a 401(k) plan. It allows you to save for your child’s education tax-free though an array of investment options. Money in these accounts can be used for undergraduate or graduate studies at any accredited two or four year campus in the United States. Depending on the age of your child, payment will be more aggressive, and then become more conservative as your child gets older. Other than these, there are a lot more options available to invest savings for your child’s education to suit your unique needs.
The Uniform Gifts to Minor Acts (UGMA) and the Uniform Transfers to Minors Act (UTMA) accounts allow you to deposit up to $14,000 tax-free each year (per person) in an account to be used for your child’s education. The account is in your child’s name but managed by you until the child reaches 18 or 21.
Consult A Financial Adviser
To help you make the best possible decision, a financial advisor could be really important. He would assist you in creating a savings strategy to cover your child’s future education needs and what would be the most appropriate choice within your overall financial strategy and timeframe. Financial advice and financial planning mean much more than just guidance for investing.
There are a lot of ways to save money for your child’s education, and it is best to investigate them first with your financial adviser to make the best decision possible. With just enough dedication and commitment to make all of these things happen, a more secured future is guaranteed for your child, and you’ll never have to worry again about what tomorrow may bring.