As with all other savings accounts, the savings rates between college savings accounts can vary, but, with the ever-rising cost of college tuition, you’ll need to find a college savings account that yields significantly above the rate of inflation if you want your “today’s” dollars to grow enough to afford tomorrow’s education. Figuring out which accounts have the best savings rates obviously makes financial sense, but where do you start?
7 - 24 - 2012
7 - 10 - 2012
College investments and endowment funds are important components of school tuition costs. When these funds perform well, institutions better control school tuition costs and designate significant portions of earnings to university-sponsored scholarships.
Since the recent recession, many endowment funds have declined. Most investments have yet to recover to pre-2006 levels. University investment problems require that your college savings plans become more conservative and rewarding.Read More
3 - 21 - 2012
A qualified education savings account usually offers federal tax advantages to participants. The key factors are “how much” and “how they work” for investors. While you can use any savings or investment account to plan for college, qualified college investment funds offer tax advantages that standard accounts do not.
For example, a Coverdell Education Savings Account (ESA) offers tax-free earnings increases, if the parent qualifies. If the parent (or child) has “modified adjusted gross income” less than $110,000 (or $220,000 for joint tax returns), and your child is under 18, you qualify for these college savings accounts. If you only withdraw funds for your child’s education expenses each year, these withdrawals are also tax-free.
2 - 24 - 2012
With consistently rising education costs, college savings planning is a necessity. But which plan is right for you? Consider your financial situation now and in the future, the age of your child when you start, and then set reasonable goals for yourself.
Federal Government Plan
Saving money for college can be accomplished courtesy of the US government. Your Congress sponsors the Coverdell ESA (education savings account) plan for those earning less than $110,000 (single tax filer) or $220,000 (joint tax filers) per year.
Although it has a modest annual contribution limit–$2,000 per student per year—withdrawals are tax-free if used for qualified education expenses. Qualified expenses include tuition, room, board, fees, and supplies.
You’ll also enjoy personal investment flexibility, as you can invest in stocks, bonds, mutual funds, and cash equivalents. You have no restrictions on the number of trades (buy or sell) you want to make.Read More
9 - 23 - 2011
When parents are asked about their child’s education, the first thing that usually comes to mind is the school that their son or daughter attends. The reality is that while school plays an important role in what children learn, parents are the driving force behind how much their children achieve.
Research shows that when parents are involved, students have higher grades, better test scores and increased graduation rates.
As the school year begins, think about ways you can make this school year a family affair. Here are some suggestions that have worked for other parents::
1. Hello, my name is… An important way to support your son or daughter is to get to know his or her teacher. Be sure to attend parent-teacher conferences so that you understand the teacher’s expectations. This will also give you a chance to hear what the teacher thinks are your child’s strengths and areas that need improvement. You’ll have an opportunity, too, to help the teacher learn more about your child’s personality.
2. It’s time for homework. For many parents, helping a child with homework can be one of the most frustrating times of the day, especially if the child is disinterested or distracted. However, homework is an extremely important task that not only helps children practice what they are learning in the classroom but also builds discipline and responsibility.
The American Academy of Pediatrics offers these tips to create an environment that is good for doing homework:
• Give children a work space in their bedroom or another part of the home that offers privacy. Ideally, this should be a relatively quiet place with plenty of light. In addition, help your children to gather the necessary tools to complete their homework before they begin it.
• Establish a household rule that the TV stays off during homework time.
• Be available to answer questions and offer assistance, but don’t do children’s homework for them.
• Take steps to help alleviate eye fatigue, neck fatigue and brain fatigue while studying. Close the books for a few minutes, stretch, and take a break periodically.
3. May I help? Volunteering at your children’s school is a wonderful way to show them that you care about them and their education. Here are several ways that a parent can volunteer assistance: become a classroom helper, help plan or chaperone a field trip, attend school board meetings, or volunteer to speak in the classroom or at a career day.
4. Get excited about what they’re learning. A great way to show you’re excited about what your children are learning is to ask them questions and listen to their answers. Help with a project by pitching in to gather the materials. Study with your children. Create games to help them learn. Put notes of encouragement in their backpack. Many schools and teachers also use the Internet to show what the students are learning. Visiting the designated websites may even let you know what the kids are learning before they tell you.