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Investing in Education Offers the Best Return of All
Investing in Education Offers the Best Return of AllWhether you're saving for your child's education or your own pursuit of a second career, it's a wise investment to start planning and saving now for college. Even if you turn over your savings plans to a professional, there are some personal commitments that start at home.
Here are some tips, supplied by University of Phoenix instructor and investment expert Gary Dvorchak:
1. Create a budget that includes a regular contribution to a college savings fund. Minimize unnecessary spending in order to contribute more to your education savings fund. Beat temptation by arranging to have money automatically deposited from your paycheck into a college savings plan.
2. Investigate a 529 tax-advantaged college investment plan. Distributions used for qualified education expenses are exempt from federal income tax.
3. Save with your child. Start a piggy bank and encourage your child to save regularly. Then make annual contributions from the bank to the 529 plan; offer to match what your child saves.
4. Meet with your child's high school counselor to investigate the schools that offer the most comprehensive financial aid and scholarship programs.
5. Saving bonds are a safe way to save for college. Most types of saving bonds have tax-free interest rates.
6. Stocks are another means of profitable saving, though more aggressive and so more risky. With tuition costs on the rise, stocks are a great way to earn additional money to save long term.
7. Research federal and state funding that you can apply for to aid your college savings.
Rachel Koning Beals has written about credit, real estate, personal finance and investing for 13 years.
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