Sunday, November 15, 2009

What to do to save for college

Posted by Lindsey Connell

It is important to know both how to save and when to start saving for college. The first important thing to know is that the sooner you begin saving, the better. Parents should begin putting money aside for their child’s college fund the moment they are born. Also, once the child begins working, they should immediately begin putting aside a percentage of their income for college. Another helpful tip is to invest in stocks because stocks are best for your college saving portfolio. Besides this, most people saving for college think they have to have the entire amount saved, but loans and grants can bridge the gap between what you have saved and what the school costs. Even with this in mind, it is important to save as much money as possible because with the economy down and more people requesting scholarships and loans, the chance of getting one is slightly more challenging. Another tip is to consider 529 college plans but it is important to know that they can be extremely expensive. With this plan, the account grows tax deferred and withdrawals taken for college costs are tax free.

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