529 College Saving And The Benefits Of Beginning Early
A 529 college saving plan is a long-term saving vehicle for people who wish to prepare early for their ward's higher education needs in the future. These programs are run by state governments and a few approved educational institutions. The rules of the 529 college saving plans differ from state to state, so you need to do your homework before opening an account. Parents who begin the 529 college saving early in the child's life and contribute regularly should be thankful when college age rolls around.
If you start 529 college saving early there are many benefits, such as tax deductions and long term savings benefits. The earlier you start the better it will be. A 529 account allows your investment to grow tax-deferred, which can make a huge difference when compounded over eighteen years. Just a small monthly installment will help insure your child's future education. As your child steps beyond high school into college, you can have a sufficient amount of money in your 529 to take care of his/her financial needs.
The most costly aspect of going to college is tuition and mandatory fees. The tuition can vary from a few thousand up to $45,000 or more. Many students are opting to begin with a 2 year course at a community college, then transferring in to a 4 year school. This is a move that can save you thousands of dollars over the course of a college education. This sort of move can really make your money go a lot further.