Posted June 23, 2009 by

Think College When They Are in Diapers!

In 18 years, a degree from a public school will cost around $200,000 and a private university will run closer to $400,000, according to the College Board, which administers the SAT standardized college admissions test.
Adapted from “The Wall Street Journal Financial Guidebook for New Parents,” by Stacey L. Bradford. Copyright 2009 by Dow Jones & Co. Inc. Published by Three Rivers Press, an imprint of the Crown Publishing Group.
For most of us, the only way to accumulate that kind of cash is to start setting money aside while our kids are still in diapers.
How?
529 Basic College Savings Plan
The 529 plan is a tax-advantaged savings account that allows you to invest money today and withdraw the funds free of federal income taxes, provided the money is used for qualified college expenses.


529 Prepaid Tuition Plan
A prepaid tuition plan allows you to set aside money in an account that locks in today’s tuition price for participating schools. These come in two flavors: state plans for state schools and an independent 529 plan for private colleges.
The UGMA and UTMAThrough the Uniform Gift to Minors Act (UGMA) and the Uniform Transfer to Minors Act (UTMA), a child can own securities and other investments in his or her own name, as long as a parent or guardian acts as a custodian on the account until the child reaches the age of majority.
Increase Financial Aid
To maximize how much money a family qualifies for, parents should save as much as they can in their own names, rather than their child’s. The good news is that when you open a 529 college savings plan or a Coverdell education savings account, these accounts are viewed as parental assets.
Dr. Debi Yohn.jpg Article by, College Parenting Expert, Dr. Debi Yohn, whose advice on successfully getting college students through college with an emphasis on graduation and rewarding employment is sought by parents from around the world. Now for the first time, she reveals 27 Winning Strategies for Success – a guidebook geared to parents of new college students. Get her free e-Book now at http://www.collegeparentsadvice.com/ and improve your child’s chances of a successful college experience.

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