Let’s put the fun in College Fund
TAKING THE STEP TOWARDS COLLEGE SAVINGS
Many of you aspired to it, fought through it, finished it and have children that want to do the same.
It sounds like going to war but it’s not… It is College and you know that it does take some discipline and focus to finish college.
Your goal as a parent is to make sure that your kids are fully equipped to handle the battle and come out the victory, meaning they graduate in less than 5 years saving you an additional year of tuition payments… lol!
So college funding… Is it that 401K thing I have at work that they take out of my check for? The answer to this question is no. You have probably thought of your 401k in this way at some point or another but that’s not what it was meant for. Your 401k is meant for retirement income. If you use it to pay college tuition for your children you will deplete your retirement income if you do not have another investment source which is not a good thing.
So how do you save and put the fun in college funding? First you get a 100 giant water cooler bottles and find all loose change in the house… ok Im just kidding about that. Lol!
Let’s explore some of the options that will allow you to save for college.
There are a number of ways to save for college. Just to name a few:
- A 529 Account
A 529 college fund account allows you to save for college with after tax dollars so the money in the account grows tax free. This is great because when you use the money for college you don’t have to pay any additional taxes. The money however is reserved strictly for educational purposes so you would not be able to use it for anything else in the event that your child got a full academic or athletic scholarship.
- UGMA (Pronounced UGG – MA)
The UGMA or Uniform Gift to Minors can be used to save for college as well. It offers a bit more flexibility because it does not limit what you can do with the assets once they are given to the recipient. The new college student will be responsible for using the funds responsibly so teach them good financial habits early if this is your option.
The fun in saving college is getting your children involved. Sit with them show them their accounts and educate them on the growth over time and then allow them to actively take part in funding their account by adding their own money also if they would like to see it grow.
By doing this now both you and your future college grads are invested in their future. And that looks like a very bright future.
To get information on SAVING for College, how to find a financial coach, TIPS on money, Creating a budget, Saving, improving your Credit Score and ways to find out how you can start planning for early retirement, make additional income and get Financial Information and contact a Financial Coach leave a comment and we will be happy to help you.
Have a great Weekend!!!
See you next week
