Tuesday, July 3, 2007

Paying for your child's college education - Learn about your options.

Saving for college can be one of the most challenging financial goals and it is important to take advantage of every opportunity to put extra money into your child’s college fund.


Our number one goal is to raise our son to be good adult... AND, to make sure that he is well-educated so he is prepared to have a good future.


As young as Zach is (in the fall he will be going into first grade), I already have his education in mind, particularly, how we'll save for his education. After all, just like any investment, the earlier we start the better.

I started saving a little ($100 a month) several years before he was born, but I have no idea if it will be enough and the money is not being put in a typical education fund, so it may not even be used for that. I may end up needing that money for retirement or another one of life’s many expenses.

At this point I think it is definitely time for us to put together a more definitive plan for Zach’s education. We still have several years to make sure that we have enough money saved, (or enough to at least get us started) for Zach’s education.

Several financing methods for saving for college are available. Some are even tax-deductible.


529 College Savings Plans lets us earn stock-market returns on college savings. Our contributions or investments are set aside and can even grow tax-free.

I like the fact that the money is set aside for the specific purpose, and incurs no penalties if withdrawn for that purpose. Also, several people can contribute to one beneficiary. This is a good vehicle for grandparents and other family member who wish to contribute small amounts of money, (even a $25 or $50 birthday or Christmas check is helpful) to a college fund.

Take advantage of the opportunity to join us on Thursday, July 19th, to get the facts about College Savings Plans. Our seminar starts at 6:00 pm at Hawthorne’s Naperville Branch, located at 1519 North Naper Blvd, in Naperville. Click here to register for the seminar today.

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