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.