Saving for college is an important first step in preparing our children for a higher education. With competing financial needs and the ever rising cost of higher education, families are looking for solutions to help achieve their goals of sending their children to college. Kid Spaces got together concerned parents and Regina Lewis, author and an expert on personal finance trends, to talk about college saving solutions.
One of these solutions is a special savings account called a 529 College Savings Plan, which offers an effective way for a child to have the finances in place for a college education. TIAA-CREF, a financial services company with a not-for-profit heritage and a deep understanding of the 529 marketplace has partnered with AARP to create a program called AARP College Savings Solutions from TIAA-CREF to help families learn more about ways to save for the costs of college. If you have educational plans for your kids, you will not want to miss this!
The Cost of Excellence
The cost of education in America is getting higher and higher. The best way to cover costs is to start saving early for your child or grandchild. Giving the gift of education will put the child on a path of learning and excellence.
Having a plan lets you take advantage of saving money in the long run. TIAA-CREF, a company that has been in the higher education space since its founding in 1918 has partnered with AARP to offer a program called the 529 plan which is a great choice if you want to put money away for your child or grandchild’s education.
A 529 College Savings Plan is a State-Sponsored, tax advantaged savings plan. Many benefits are offered:
- Money saved can grow tax deferred
- Withdraws are federal and state income tax free
- Can be used on most accredited colleges
- Covers books, room and board, tutition, supplies
It works by putting money away and building interest off that money and making the amount grow. Grants and scholarships cannot always be reliable. Having a 529 plan is the safest backup to help pay for a child education.
The savings plan is also has federal tax benefits. Many states offer tax deduction or tax credit to the College Savings Plans.
Make sure to tune in to Designing Spaces on May 29th (5/29!)to discuss the 529 plan at 7:30 am (ET/PT) 2014 on the Lifetime Channel to learn more!