College Planning
Everyone knows planning for college is not only frustrating, but upmost stressful when it comes to funding our children education goals and aspirations. Since the marketplace is ever changing so are the options that are available to you. Below is some reasons on why it is better to start early versus later in our children lives.
College Costs
When you are first thinking of your children’s college education, the cost is probably at the top of your list. Will your child qualify for scholarships or other grants that are out there? There is really no way to tell that when you first start saving. Universities and even out-of-state universities are also different.
So what do you need to plan for? The cost of a four-year university can vary, but the fact that remains is there will be cost for tuition, room & board, books, and even travel to think about. You can also set aside money for miscellaneous supplies such as food and gas to get around town.
Ways To Save For College
When we set down with individuals and families alike in the Frisco, McKinney, Prosper, Celina, Allen, Plano Texas area the options available to us are quite vast. But of course you could always put it off and apply for scholarships, financial aid, or even loans when the times come for college. With this being said loans have to be paid back, financial aid is available based on varying qualifications, and for scholarships there is no guarantee that our children will receive them either for academic or sports. So what options do you have available?
The financial products that can help can vary depending on your goals for your child’s education. For instance here in Texas we have something called a “529 plan”. The 529 plan is designed for education savings both for college and for private use. It works simply as like a savings account in a financial institution, except with one main difference. It allows you to place money in this plan as pre-tax thus being advantageous in varying circumstances. Other options for college planning can include investment accounts i.e. mutual funds, money market accounts, life insurance, annuities, and so on.
Why Start
College Planning
Today?
Traditionally when we begin this discussion, we always ask our client what do they currently have saved and most of the time the answer is nothing or little. If you are looking to put a major dent into the savings the earlier you start the better it easy for it enables you to accumulate interest and to utilize the concept of “the rule of 72” on your side.
Running Out Of Time?
For more information about college planning and how to plan for the future. The folks at Sweetness Insurance are more than happy to answer any questions and are able to help you set up the necessary accounts to accomplish your goals or objectives. Thank you for your interest in an college planning, we are proudly working individuals and families alike in the Frisco, McKinney, Prosper, Celina, Allen, Plano Texas area.