The cost of a college education is increasing each year, causing most students to graduate with thousands of dollars in student loan debt. One of the best things parents can do to plan for their child’s future is to open an education fund as early as possible. There are many options to help you save, including tax-advantaged 529 plans and Coverdell accounts. When formulating a savings plan, it is essential to factor in all education expenses, including tuition, books, and living costs. Working with a financial advisor can help you pick the best savings strategies and connect you with education planning resources.
Education planning is the process of determining how much it will cost to send your children to college and determining strategies to cover those expenses. The first step is to choose the best way to invest and save money. Some people choose to invest in U.S. treasury bonds, which offer many tax benefits and are easy to use. Other methods include opening a certificate of deposit account, investing in municipal bonds, or opening a money market account. Other popular options include:
If you have multiple children, you want to open a separate account for each child, so they do not have problems accessing the money when they need the funds.
Are you ready to add an education fund for your children to your financial plan? Contact Secure Planning Group, LLC today to learn more about the options available in your area. We can help with education planning tax issues, systematic investing, 529 plans, and more.