With the ever rising cost of a college education, it is never too early to start planning for your children’s future. By investing early and adopting a prudent strategy, a small amount of money can become a sizable investment through the power of compounding.
What is Available to You
In choosing a college savings plan it very important to know the risks as well as the rewards associated with the various plans. Other important factors to consider as part of the evaluation process should include: tax benefits, fees and expenses, investment options, plan limitations and restrictions.
Important Considerations in Saving for College: Be aware that investments and savings can affect federal financial aid eligibility. The impact on financial aid varies depending on whether the savings belong to the child or the parent. Keep in mind that private and state colleges may have their own rules for financial aid.