Best Ways to Secure Your Child’s Future
As a parent, you must have a desire to give your child the best of education by getting him enrolled in the top-most universities of your country. But only few parents are able to get their children enrolled in the top-most universities of their country. If you want to know how these parents are able to secure their child’s future with a proper plan, then read on:
For those who don’t know about 529 plan, 529 plan is basically a tax-advantaged education savings plan which is operated by an educational institute or a state to encourage families to set funds to bear the cost of future college. Though there are a plenty of 529 plans but they all have their own operating costs and annual fees. 529 plans have a great advantage of tax, which means that 529 are subject to federal state tax deduction. Most of the states have their own 529 plan and if you want to invest money for your child’s future, try to put money in this vehicle as it will lead to a fruitful result.
UTMA and UGMA Accounts
One of the other ways through which you can save your assets for your child’s education is by putting these assets in UTMA and UGMA accounts. UTMA stands for the Uniform Transfer to Minors Act while UGMA stands for the Uniform Gift to Minors Act. These are known as custodial accounts because they let you put your assets like plain cash, bonds, stocks and annuities into them. Therefore, if you want to give the best college education to your child, try to keep a lot of money in one of these accounts.
Coverdell Education Savings Account
One of the other ways through which you can make your child acquire the best quality education at college is by saving money in this custodial account known as Coverdell Education Savings Account. It is designed specifically to support a child’s education. You can consider saving your money in this account if you want to save for your child’s college education. It has a minor downside that it doesn’t let you put more than $2000 in a year into multiple or one Education Saving Accounts.
Get your child to pitch in
One of the other ways through which you can save money for your child’s college education is by getting your child to pitch in and making him earn some money. See if you have a four year old child then you are completely out of luck, but if your fourteen year old child is playing with toys or seventeen year old is babysitting then you should make them put away some money for college. George Walter, who is a vice president for enrollment services at La Salle University in Philadelphia said that students should divide their money into three portions, so that they can save enough money for their college education expenses.
If you can’t raise enough money, lower the costs
One of the easiest ways to help your child get the best quality college education is by lower the amount of money you think your child will need for the college, if your capacity is really that limited. You can also apply for scholarship for your child and can also go for other strategies. Shakeela Hunter, who is a director of the Student Money Management Center at the University of Texas at Arlington has rattled off a plenty of suggestions like choose an affordable community college for your child to attend and then transfer those credits to the favorite universities of your child. This will solve your problem of saving a large amount of money for your child’s college education.