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When Talking about Education, Time is Money!

Today, a very good education can give you open doors to better paying positions, a better lifestyle, and the opportunity to spend your time doing the things you enjoy most. Education is one of the most important investments of your life. Therefore, it is recommendable to be prepared for that because the financial cost of a school year is the most considered aspect when people make decisions related to education. In the United States, college costs are rising. According to the College Board, most students and parents can expect to pay, on average, from $112 to $1,190 what is more than last year. Everything depends on the type of college or university. So, you should start thinking about college costs even if your children are 16 or 17 years. Here, there is an overview about college savings. Remember that when we are talking about education, time is money.

There are many ready-made savings options that make saving for college easy. Here, there are two of the most popular alternatives. One of them is the State “529” College Savings Program. This kind of saving program let you save by state-sponsored investment accounts. The main characteristic of this plan is that earnings and withdrawals are free from federal taxes. Also, people can use these savings at any university or college in any state. Funds are managed as familiar assets. This aspect let current financial aid formulas consider only five percent of the parental assets when determining a family’s need condition.

The second plan is State “529” Prepaid Tuition Program. This plan allows you to pay all or part of state-public universities at present-day costs. The value of the investment is guaranteed by the state to match in-state public tuition inflation (currently in the five to eight percent range). Besides, these plans are considered as scholarships; in this way, you can pay gradually the debt in a dollar-for-dollar basis. Also, you can transfer your accumulate savings to private or out-of-state colleges. Nevertheless, you have to pay the difference between the prepaid tuition price and the current tuition at the out-of-the state school.

Keep in mind that the more you save, the less you will need to pay. Thus, saving money can make a difference.

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