Thursday, June 6, 2002
More Bang for Your Buck: Saving for College
Call it college savings 101. A college education can teach any parent how to budget their money. 4 years on campus can quickly become 4 years in debt if you're not prepared.
(WSVN) Do you have $100,000 dollars to send your child to college? The answer is probably no. Tuition rates are growing fast so be prepared to save now.
Angela Mahoney, who is saving for her kids college, says "I think it's imperative that you start saving for college early, I don't want my children to be burdened with the bill of college."
Angela Mahoney is on the right track. She's already thinking about college and her kids can barely read. Financial advisor, Emil Infante, says Angela and other parents should consider a few different options.
First, The Florida Prepaid Plan. Emil Infante, of Raymond James & Associates, says "Basically you pay for tomorrow's college costs at today's rate."
In other words, a state university currently costs $10,000 a year. In about 18 years, when your child goes to school, that cost will have tripled, but you'll still pay $10,000.
Then there's the 529 plan. It's basically an investment account.
"You take money, every month, out of your paycheck, you put it into this, this money gets invested and you don't pay taxes on the growth of the money."
The great thing about this plan, you can invest up to $10,000 a year. And the latest way to save for college, spend money today. Strange, but true. The program is called "U-Promise." Everytime you buy some of these items, a percentage goes into an account.
"I buy the things that I would buy everyday, but I get a certain sense of satisfaction knowing that the money that I have to spend is gonna come back to me in a small portion."
The program is free, but to really get "More Bang for Your Buck" you have to start early.
FOR MORE INFORMATION:
Raymond James and Associates: