Why is it important to start looking for savings plans for college as early as possible? Achieving a big financial goal can seem less overwhelming when you put steps in place to reach it little by little over time. When it comes to helping your children pay for college, you can do this by putting a savings plan for college in place. By saving for college today, you can help provide the financial resources they need to get a higher education.
As you begin looking at different approaches to college savings plans, there are many options available. Choosing which is best is up to you.
There are several common methods of saving for college, and the more traditional ways include purchasing U.S. Savings Bonds, opening savings accounts, creating a taxable investment account, building cash value in a life insurance certificate, and purchasing annuities.
Along with more traditional college savings plans, you can choose to open accounts designed specifically to save for college.
For example, a 529 College Savings Plan is a tax-advantaged way to save for higher education. This type of plan offers specific benefits to potentially grow your college savings.
With a 529 College Savings Plan:
Educational expenses most commonly paid for through a 529 College Savings Plan are:
Every state has a 529 plan, but you may be able to use a plan in a state other than where you live or where your child goes to school3.
A second option is the Coverdell Education Savings Accounts. These accounts are another way to save for college, as well as primary and secondary education expenses. Total contributions cannot surpass $2,000 in any year.
Woodmen Financial Services, Inc. can help you find a savings plan for college that fits with your future goals. Talk with your local WoodmenLife Financial Representative to discuss your options.
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