Saving for College: It is Possible
It is no secret that saving for college can be an overwhelming and difficult process, especially with the rising cost of tuition. Although parents want their children to graduate debt-free, many students find themselves swamped with loans after receiving their diploma. This can quickly turn into a hole that takes years to climb out of.
Fortunately, there is light at the end of the tunnel. According to the findings from Fidelity’s annual College Savings Indicator Survey 2013, there are multiple ways to make saving more manageable. The study not only provides valuable insight as to how parents and students have saved in the past, but also their recommendations for the future. A lot can be learned from their …show more content…
A majority of parents rely on their own knowledge and experience to navigate the complex financial world, as only 33% have a relationship with a financial professional. However, out of those who do, 69% think it has helped them move closer to their college savings goal. An advisor can answer questions, alleviate concerns and outline an effective plan for parents and students alike. For example, they can assist with a number of areas, including strategies for efficient college savings, the debt you or your child may accumulate in college and the financial aid process. With their support, you can feel educated and confident about your available savings options.
Find out about a 529 savings plan. Another smart investment is to open a 529 plan. The account covers a variety of educational expenses, offers great tax benefits and is open to all income levels. When survey participants were asked for their opinion on this financial strategy, 78% agreed that it is an effective, tax efficient way to save for college even with market volatility. In addition, those who have already opened a 529 plan expect it to cover, on average, 50% of the total cost of college. This is promising news for parents and students who are looking for a stable, lucrative
It is no secret that saving for college can be an overwhelming and difficult process, especially with the rising cost of tuition. Although parents want their children to graduate debt-free, many students find themselves swamped with loans after receiving their diploma. This can quickly turn into a hole that takes years to climb out of.
Fortunately, there is light at the end of the tunnel. According to the findings from Fidelity’s annual College Savings Indicator Survey 2013, there are multiple ways to make saving more manageable. The study not only provides valuable insight as to how parents and students have saved in the past, but also their recommendations for the future. A lot can be learned from their …show more content…
A majority of parents rely on their own knowledge and experience to navigate the complex financial world, as only 33% have a relationship with a financial professional. However, out of those who do, 69% think it has helped them move closer to their college savings goal. An advisor can answer questions, alleviate concerns and outline an effective plan for parents and students alike. For example, they can assist with a number of areas, including strategies for efficient college savings, the debt you or your child may accumulate in college and the financial aid process. With their support, you can feel educated and confident about your available savings options.
Find out about a 529 savings plan. Another smart investment is to open a 529 plan. The account covers a variety of educational expenses, offers great tax benefits and is open to all income levels. When survey participants were asked for their opinion on this financial strategy, 78% agreed that it is an effective, tax efficient way to save for college even with market volatility. In addition, those who have already opened a 529 plan expect it to cover, on average, 50% of the total cost of college. This is promising news for parents and students who are looking for a stable, lucrative