Saving For Tuition & Books
It's getting more and more expensive to send a child off to college. Some predict that a four-year, non-private degree could cost upwards of $100,000 or more in the next 20 years. There are ways you can start saving for that possible expense now.
Start Saving Early
Even if you start a simple savings or share account for your child or grandchild, you can help them save a lot toward their books, and more. Just make sure you're saving enough each month for them. Estimate how much it might cost for them to go to school and work backwards. If it will take $500 per month for 18 years, ask for help. Relatives may be willing to lend a hand in the form of a college-specific educational IRA.
Educational Savings Account
Also known as a Coverdell Education IRA, an Educational Savings Account allows for after-tax contributions with a high annual limit per child. And you can keep adding to it until they are 18. Here's the best part: Earnings in this account are tax free if distributions are used for tuition, equipment, fees, or room and board. It really is one of the easiest ways to help save for a child's school expenses, whether it's for college, trade school or simply necessary expenses in high school. Call us at 503-813-3242 (toll free 866-813-3242) to open yours today. Or while you're on the phone, ask about other savings options that might work for your situation.