Are you among the many parents or grandparents who are concerned about the rising costs of funding a college education for your loved ones? Earning a college degree can now cost from $52,000 to $130,000 and the costs are rising faster than the rate of inflation. For example: In the past 6 months alone the USA has seen the following increases in prices: Oil – 28% Oats – 36% Lumber – 33% Rice – 40% Coffee – 100% Cotton – 125%. All this while the dollar has dropped by 6%.
According to studies, among younger families, with children under the age of 18, saving for their children’s college education is one of their most important financial goals. Of course the sooner you start planning for college the better. But there is hope for procrastinators as well. There are certain things that can be done to reduce the out of pocket expense of college dramatically and the sooner you can plan for them the more you can save. You make be counting on some combination of these options to pay for your children’s or grandchildren’s college costs.
- 529 plans
- Coverdell ESA
- Custodial accounts
- Personal savings accounts
We will discuss these options in more detail in future posts and some alternatives you may not be aware.