![]() ![]() you do not pay taxes on any growth), and generally have a 3-5% rate of return. What is a 529 Plan?ĥ29 Plans grow in a tax-free environment (i.e. ![]() A recent 2018 study by Edward Jones found that only 29% of Americans were even aware that 529 savings plans existed. Some options available include savings bonds, playing the stock market and the lesser-known 529 plans. Many families are putting their hope into scholarships and federal grants like the Pell Grant, but those grants have not been growing at the same rate as the costs to send your child to college.įortunately, there are many options available to those looking to save for that college degree. These costs include tuition, fees and living expenses. Parents of college-bound children are going to have to help pay for these rising costs somehow. By 2027 that figure is expected to be almost $12,500! In fact, nationwide in 2017 the average cost for one year of education at a 4-year college in the United States clocked in at $9,725. For example, Louisiana has had to deal with the worst increase of 106.9% while Ohio’s comes in at a much more reasonable 5.2%. These 10-year higher education inflation numbers vary by state. Higher education costs at both 2- and 4-year colleges and universities have been rising steadily over the last decade. Second – and by far the most impactful – is the uncertainty of how much college is actually going to cost once your child starts college. First, the fact that college is so far into the future makes parents feel like there is plenty of time left to start (hint: there isn’t). Starting to save for college seems like a daunting task to many parents of young children. Everybody knows that their children’s college tuition is going to have to be paid somehow by someone someday. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |