I am putting $100 dollars a month in my saving account! But is there a way where I could gain more growth than doing it like that!Whats one of the best ways for a young parent to go when saving for your childs collage fund?
Look into a 529 plan. Each state has its own plan. And you can use any plan in any state regardless of where you live. You receive preferential tax treatment, much like a Roth IRA. I chose the utah plan for my son. There's some links below that should help you.Whats one of the best ways for a young parent to go when saving for your childs collage fund?
In Canada,opt for a Registered Education fund.The government kicks in 20% of what you save,no better investment than that.Secondly,the interest or growth is taxed to your child when they get it out for their college education which usually is at a zero tax rate as they are not earning enough.
You should be saving for yor retirement first. Students can get financial help later when the time comes. I would open a savings account that offers a higher interest rate then the average small town bank. For example..ING direct or Wamu now offer a little over 4.50% APY.
Open a 529 plan. Every state has one and several states have 2 or 3 plans. Google college savings plans and look for 529. The money grows tax free as long as it's used for college.
You want to open a 529 College plan. This way you can pick a wide array of investments that grow tax free! Once your child is ready for college, all funds may be used tax free for any college expense.
As a bonus, some states let you use your contributions as a tax write-off at the end of the year! Check out this link and look around.
I like in Arkansas. The state lets me deduct up to $5000 off my taxes each year! I have been maxing this out and it makes for happy times come tax season.