Your Money Minute It Pays To Save For College 8/26/25
Aug 26, 2025
Financial education in college planning is key! Families face significant challenges with tuition costs, and proactive strategies are a must. Discover the benefits of 529 plans as a powerful tool to ease financial burdens. Preparing early can transform the stress of college expenses into manageable plans, ensuring a smoother journey for students and parents alike.
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Confidence Drops Between Acceptance And Bill
- Parents often feel confident when a child is accepted to college but become less sure when the tuition bill arrives.
- The emotional gap between acceptance day and payment time reveals planning and cash-flow surprises for many families.
Use A 529 Plan For Tax-Free Education Savings
- Consider using a 529 plan to let savings grow tax-free and pay qualified education expenses tax-free.
- Use 529s for college, vocational school, and related qualified costs to maximize tax advantages.
Plan For Unused 529 Funds And Tax Rules
- If your child doesn't use 529 funds, roll a chunk into an IRA or change the beneficiary to another family member.
- Track gift-tax and estate-tax implications when contributing to maximize benefits and avoid surprises.