Schools seem to start earlier every year. I am of the mind that school shouldn't start until after Labor Day, but I lost that battle long ago! While starting school in August no longer has the scent of autumn in the air, it is a time to think about the future.
"It is never too early to start saving for college, and it can quickly become too late."
It's Never Too Early to Start Thinking About College
School brings the thought of that ultimate education goal: college! How many times did your parents tell you, and do you tell your kids, "Get good grades so you can get in to college"? Yes, we turn into our parents in more ways than one!
First, set aside the arguments about:
- The high cost of college
- Whether or not attending college increases career earnings
- Whether private schools are worth it or not
- The likelihood of receiving scholarships
- The perils of excessive student loan debt
If college is an ultimate goal for your children or grandchildren, it is prudent to start saving today. Better to have started yesterday, but don't wait until tomorrow. Get it?
Ohio's College 529 Plan
College 529 plans [named after Internal Revenue Code section 529, similar to 401(k) plans, which got their numeric designation the same way] are an attractive tool for college savings.
Why? College 529 plans are sponsored by state governments, so I'll focus on Ohio's plan.
- State income tax deduction for contributions, with a limitation
- Tax-free growth and withdrawal of earnings for qualified expenses
- Low-cost, diversified investment options (Vanguard)
- Ability to change beneficiaries, which is very nice if you have multiple children or grandchildren
Start saving now, even with only small deposits. Time flies between kindergarten and college. Learn more about Ohio's plan at www.collegeadvantage.com. Contact us if you have questions or need advice. Your children and grandchildren will thank you someday!