College
Create A Plan
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.
Investment Options
College should be considered a lifetime investment rather than just a four-year expense. It requires financial planning and personal sacrifices. The earlier you start saving and investing, the less money you will have to save and invest later. Furthermore, the earlier you start saving, the less risk you'll have to take in your investment choices because long-term investing generally carries less risk. There are many investment alternatives suitable for college savings.
Cost Increase
A college education is an investment that pays off. There is an average $400,000 increased lifetime income for a female who graduates college versus one who did not. And the earnings differential is $700,000 for men. Unfortunately, investing in a college education is seldom inexpensive. College planning has become increasingly important over the last decade, as college costs have skyrocketed at over twice the inflation rate.
Education IRA’s
One of new products that came out of the Budget Reconciliation Act of 1996 is the Education IRA. The Education IRA offers the potential for tax-free growth when you use the account to fund a child's qualified higher education expenses.
Aid, Grants, Loans & Scholarships
Even if you have not been able to save all the money you will need for college, several alternatives exist to assist you in making up the difference. Financial aid comes in many shapes and sizes -- from scholarships and grants which do not need to be repaid, to federal loans which carry very favorable interest rates and terms.
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