Your kids are still young but don’t be misled by the false sense of security it brings. In a few years (it will be there before you know it) your children will be off to college. You know what that means of course? Not only will your children be away from you but they will also incur a cost that can be a wallet breaker.

1. College Savings Plans Are Beneficial
Your kids are still young but don’t be misled by the false sense of security it brings. In a
few years (it will be there before you know it) your children will be off to college. You
know what that means of course? Not only will your children be away from you but they
will also incur a cost that can be a wallet breaker.
I’m talking about the cost of a college education of course. It’s hard to miss since you
see it in the news quite often – the cost of getting one seems to be going up every year.
No longer should you be complacent that you will be able to handle the costs without
some sort of plan. That’s why if it’s a plan you want you should think about getting one
of those College Savings Plans.
As its name suggests it is a savings plan that allows families to save early and
conveniently for their children’s future college education. Think of it as an investment for
your kid’s future.
It offers a lot of benefits not the least of which allows your children to go to college with
less financial burden for them and for you. After all if you start saving when your child is
born you will have 18 years of savings accumulated. Not only that, this money grows as
well since it has an investment arm usually tied to the stock market. This means that it
can grow depending on the market.
You also get a tax benefit as well. That’s because the money grows tax-deferred. Even
when you do get your money out to pay for your child’s education you may even be
eligible for tax-exceptions so you don’t have to pay any federal tax on the gains. Even
your state may exempt your money from local state tax so you get another tax break.
It’s flexible since you as the creator of the plan can decide who the money will go to. At
the same time it’s not a trust so even if your children are of legal age you still have total
control of the plan. Also, you can create as many plans as you have children so you
know your kids are taken cared of at least in their educational finances.
Check out Deborah Koval’s latest financial video tip.