Families are spending every dollar that they can across the country to make their hard-earned dollars count. Even though the economy is tightening, it’s never been more important to make education a priority for your child.
College has many benefits. The College Board’s 2007 Report, “Education Pays,”The average bachelor’s degree can result in an increase of 60 percent in earnings. On average, this is $800,000. That’s more than what the typical high-school graduate can earn in 40 years.
Many families are not able to save enough for college due to today’s economy. It is possible to save more if you are proactive about saving.
“Modest contributions may not seem like much,”Liz Robinson, vice president of Upromise Investments. “but every penny counts when it comes to saving for college.”
These are the three options available to you. “save smart”For college:
1. You can save in the right places. There are many investment options that make sense for college savings. 529 college savings programs, for instance, were specifically designed for this purpose. State-sponsored 529 plans offer tax benefits, both federal and sometimes state. Families are not required by law to invest in plans of their home states, but they should take into consideration these options before investing.
2. Get started early. Teen parents already know this. College is a matter of minutes. It’s easy to create a 529 plan. It takes about 10 minutes to sign up and activate the account through the plan’s Web page.
3. Do not do it all alone. It’s a great way for you to increase your savings by inviting family and friends to contribute towards a child’s 529 plan. You can do it easily and securely online thanks to new tools. Ugift is an example of a service that certain 529 plans offer. It allows account owners to invite their family and friends to celebrate with gifts contributions to a child’s 529 plan account.
Visit this page for more information about Ugift and 529 college savings plans www.529.com.
