Why Should I Save for My Child's Education?
- 13 years ago
Why Should I Save for My Child's Education? - as part of the expert series by GeoBeats.
Why Should I Save for My Child's Education?
There's many ways to look at it, and one way that some of us that are financial advisers look at is that the child needs to have some responsibility, but the parents can also help contribute. And there's many ways you can look at it, but one way is called a third, a third, a third. The child, through their savings or scholarships, pays a third, a third of it comes from school loans, and the parents pay a third. And there's many ways to do that. And there's something called a, but the good thing about that is that the student has some responsibility, and possibly the parent will help with the loan if the child's successful and completes college, which also offers incentives.
But the parent also needs to recognize that their top priority should be for their retirement plan. So, if they're fully funding their retirement plan, saving ten percent, and they have extra money, then they possibly should be putting some money aside. And a great plan that is available is something called a 529 Plan. And it's offered in each state, and so each state's 529 Plan is different. In Ohio, they have a very nice 529 Plan. So, first thing would be to investigate what your state has to offer, but if there's tax advantages and the money can be contributed by parents, grandparents, relatives, friends, so, not only can parents contribute, but they can get help from others.
Why Should I Save for My Child's Education?
There's many ways to look at it, and one way that some of us that are financial advisers look at is that the child needs to have some responsibility, but the parents can also help contribute. And there's many ways you can look at it, but one way is called a third, a third, a third. The child, through their savings or scholarships, pays a third, a third of it comes from school loans, and the parents pay a third. And there's many ways to do that. And there's something called a, but the good thing about that is that the student has some responsibility, and possibly the parent will help with the loan if the child's successful and completes college, which also offers incentives.
But the parent also needs to recognize that their top priority should be for their retirement plan. So, if they're fully funding their retirement plan, saving ten percent, and they have extra money, then they possibly should be putting some money aside. And a great plan that is available is something called a 529 Plan. And it's offered in each state, and so each state's 529 Plan is different. In Ohio, they have a very nice 529 Plan. So, first thing would be to investigate what your state has to offer, but if there's tax advantages and the money can be contributed by parents, grandparents, relatives, friends, so, not only can parents contribute, but they can get help from others.