While a college education is a worthwhile investment, it is one of the most significant expenses most families ever face. Tuition costs are rising each year, with the annual price of a public university education increasing by nearly 7% over the last ten years. Taking a proactive approach to education planning is the best thing parents can do to prepare to put their children through college.
You can simplify your financial objectives and expenditures when you save and plan for your children’s education. Having an education plan in place also teaches children good financial habits. There are several education planning options, including:
The most common way to save for educational costs is by opening a 529 Savings Plan. These plans have many benefits, including tax advantages, high contribution limits, favorable financial aid treatment, and low maintenance needs. Before choosing a savings option, you should evaluate your specific goals and choose an investment option that aligns with those objectives.
Partner With an Education Planning Professional
At Etiquette Financial Partners, we can evaluate your financial situation and develop a customized savings plan for the education of your children or grandchildren. We specialize in 529 Savings Plans and systematic investing strategies. Contact us today to schedule a free consultation.
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.