529 College Savings Program

2007-05-15 06:10:46

( Financial )



With the academic expenses soaring each year, students are now considering enrolling to a course that their family can afford. Other students tend to stop their schooling at the middle of their college life just because their family’s budget is not enough to support their needs.

Because education is important, you should find a way to finance your youngster’s schooling without sacrificing too much of your family’s budget. One good option is to apply for 529 college savings program.

WHAT IS 529 COLLEGE SAVINGS PROGRAM?

529 college savings program is a government program to aid families or self supporting people for their academic expenses. Unlike other educational programs, 529 college savings program is more affordable because you can open an account with a minimum starting investment.

Furthermore, this program is tax deductible, meaning you can reduce your taxes while financing your teen’s expenses. Remember that tax deductions differ for each state. Inquire with your home state if your 529 plan is tax deductible.

You can open an online account where you can later on put your money. The idea of the program is that you can raise enough by saving just a few dollars. It is painless and effective for most families because they will not have to spend heavily all at once.

Another bonus is that while spending your money on certain companies, a percentage of your money will go directly to your account. This way, you can earn enough money in no time.

WHO ARE ENTITLED FOR THE PROGRAM?

Any US citizens or aliens provided that they have social security or taxpayer number can apply for 529 college savings program. Also, the age of the beneficiary is important because it affects how much your savings should be and the actual money you are going to receive later on. You can invest your money for a family member, a relative, a friend or for yourself.


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