The Benefits of Saving Early for College

The Benefits of Saving Early for College As a smart saver, you know that the earlier you save for college, the better, but have you ever calculated what that really means? Check out this example. Say you have a precocious 5-year-old boy who you expect will go to a 4-year in-state school. You want to pay for half of his college expenses. When your trusty financial planner runs the numbers, you see you’ll need $100,000. You have three options: Save…

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10 ways to pay for college

10 Often-Overlooked Ways to Pay for College

10 Often-Overlooked Ways to Pay for College   As a mother and CERTIFIED FINANCIAL PLANNER™, I know how overwhelming it can be to think about how to save and pay for college.  However, I am here to tell you there are a lot of ways to pay for college that don’t require mortgaging your house, taking out parent loans, pulling from retirement, or otherwise compromising your lifestyle during your child’s college years. Also, you may want your child to have some skin…

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coverdell esa

College Savings Options: The Coverdell ESA

College Savings Options: The Coverdell ESA Coverdell ESAs, also known as Educational IRAs, may be right for you if you want a tax-advantaged way to save for education and you like to manage investments yourself. one unique feature of the Coverdell ESA is that it is the only educational savings account you can use to fund K-12 and college expenses in a tax-advantaged way. What it is: A Coverdell ESA is a special purpose investment account that you own, and you name your child a beneficiary.…

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prepaid tuition plan

Prepaid Tuition Plan Pros and Cons

What You Need to Know About a Prepaid Tuition Plan A Prepaid Tuition Plan may be right for you if you know the state where your child will go to college and you want a guarantee that your child’s college tuition will be paid for by the time your child goes to school. What it is: A Prepaid Tuition Plan is an account opened through your state of residence, where you make regular payments to the state for college tuition. Pros: You…

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529 Plan

529 Plan–Is It Right For You?

Is a 529 Plan Right For You? A 529 Plan may be right for you if you want a professionally managed, tax-advantaged way to save for education. What it is: A 529 Plan Savings Account is a managed investment account set up through a brokerage firm, bank or directly with your state of residence. Pros: 529 Plan funds can be used for just about any education expense, including tuition, room and board, technology fees, etc., as long as your child is in…

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About This Site

Leah Manderson is a fee-only CERTIFIED FINANCIAL PLANNER™ based in Houston, Texas, who designs financial plans for young families to build wealth and secure their future.