Do you want to save for your child's college education but are unsure where and how to start? Then it's time you learn the parents saving tips that we will discuss in this blog.
Pursuing a degree from an institution of higher learning remains very costly. However, studies continue to show that degree holders earn a significant amount more than those who do not possess a college degree. In fact, the average college degree holder will earn $1.2 million dollars more than a non-degree holder over their lifetime. Therefore, millions will continue to go to college each year. If you have a child that you would like to provide with the opportunity to seek a college degree, then you need to know how you can begin to save money to pay for that expense.
One option you can look at to begin saving money for your child is to open up a 529 plan. U.S. News and World Report offers the following information about what a 529 plan is all about:
The savings plans, usually sponsored by state governments, encourage saving for future education costs. They often are tax-friendly in the sense that many states will let you deduct your contributions from your state income tax, and when you withdraw the money for college, the money won't be taxed. You should research the specifications of your state's 529 savings plans to understand the numerous benefits that you can get from them as well as the requirements to get started with them.
No matter your financial situation, it is important to make sure you apply for aid. This is done by filling out the FAFSA form every year. Those who do so will get a response from the government regarding their eligibility to receive certain types of financial aid. This may come in the form of grants or loan offers to help pay for the cost of school. Ideally, you will keep student loan borrowing to a minimum, but those loans are there to bridge the gap if you are unable to come up with the full cost of tuition.