TOP 5 QUESTIONS PARENTS ASK ABOUT COLLEGE SAVINGS. PART 1

Many parents believe they owe their children a full ride to college at all cost.

College is important, it does not rank above retirement or your Storehouse fund. And it is not a reason to go into debt.

Once you are debt free and have saved up three months of expenses in your Storehouse fund and your contributing 15% of your income to retirement, now let’s contribute to our kids or grandkids college fund.  We recommend investing in good growth stock mutual funds and an Education Savings Account (ESA).

Question 1:  How can I use the money? 

Answer:  Obviously, you’re opening this account to pay for educational expenses, but each plan defines that differently.  ESAs allow you to use funds not just for education but also pay for off-campus housing, computers and other education related expenses with your ESA.

But eligible expenses for a 529 plan are limited to college tuition, room and board, school-required books and supplies.

Protect your money from uncle Sam.  Even if you have plenty of cash.  Utilize the tax free growth.


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