The cost of a college education is rising quickly and the daily distractions of life often leave you little time to address the issue, however the sooner you tackle this matter the better. The College Board states “Over the decade from 2000-01 to 2010-11, published tuition and fees at public four-year colleges and universities increased at an average rate of 5.6% per year beyond the rate of general inflation.”
For starters, here are different ways you can save for your child’s education:
529 College Savings Plan – Save and invest on a tax-advantaged basis in order to fund future college and graduate school expenses of a child or beneficiary.
Coverdell Education Savings Accounts – This plan is perfect for individuals who fall within the income limits who want to set aside dollars on a tax-advantaged basis for education expenses.
Custodial Accounts – Ideal for investors wishing to make a gift in the form of securities or cash, to a minor.