Ways to Save For Your Child’s College EducationPaying for a college education in the U.S. is expensive, and the upward trend in tuition andexpenses doesn’t seem to be lessening. According to the 2017 College Board “ Trends in CollegePricing ” report,the average annual in-state cost for a public university for the 2017-2018academic year, including tuition and fees, books and supplies, room and board, transportation,and other expenses, was $25,290 per year. For students in private colleges, the cost was nearlydouble that amount, at $50,900. When you consider fewer than 40 percent of students graduatein four years, the total price tag for a college education can be staggering.Fortunately, there are some strategies savvy parents can take to plan ahead, making paying fortheir children’s college educations less taxing.Start EarlyFirst, it’s never too early to start saving for your children’s education. Setting aside a little bit ofmoney each month from the time your child is in diapers can reap significant rewards when it’stime to pay their college tuition bills. The Department of Education provides an example thatshows saving just $14 a week in an account earning one percent interest will result in a balanceof more than $13,000 after 17 years.Consider a 529 Savings PlanYou may also want to consider using a 529 plan account to help save for college. 529 plans allowpeople to save for college on a tax-advantaged basis. Investments grow tax-deferred and, whenused for qualified educational expenses,withdrawals are free from federal income tax. Variousstates offer different 529 plan options; some include state-specific tax advantages, grants, andother potential benefits. You should carefully evaluate options, fees, and potential tax impactbefore choosing a 529 savings plan.Evaluate Prepaid Tuition PlansSome states offer an alternative to 529 savings plans by offering prepaid tuition plans, whichallows parents to purchase tuition credits ahead of time. Prepaid tuition plans offer tax-deferredgrowth and withdrawals, just like 529 savings plans. One major limitation of these plans,however, is that they limit your child’s options to in-state public universities if you want to getthe full benefit of the plan.Invest Through UTMA/UGMA AccountsYou could also choose to open an investment account for your child under your state’s UniformTransfer to Minors Act (UTMA) or Uniform Gift to Minors Act (UGMA) law. With these types ofaccounts, a certain amount of the gains istax advantaged. However, any money in the accountautomatically becomes the child’s money when he or she reaches the age of majority in your state(between 18-21). That means, although you may expect your child to use the money to pay forcollege, your child could use it for any purpose.

Leverage the Power of Cash Value Life InsuranceLast (but certainly not least), you can leverage the power of cash value life insurance to help payfor your child’s education. The SmartStart plan , available throughNext Gen Financials partnerscarriers,can do more than just help you save for college; it can help you protect your child’sfuture insurability. SmartStart is, first and foremost, a life insurance vehicle, providing valuableprotection for your child. Because the cost of life insurance is driven in large part by the age ofthe insured person, it’s generally inexpensive for children. This allows parents to both pay for lifeinsurance and set aside extra funds in the policy’s cash value account. That cash value growstaxdeferredas your child grows, at competitive rates.When it’s time to pay tuition bills, the accumulated funds can be used to pay for college expenses.Best of all, the policy doesn’t end when your child finishes college. He or she can keep it in forceby paying policy premiums and can continue to fund the cash value account, providingan assetthat can be used to make a down payment on a home, pay for their own children’s educations, orhelp fund their retirement.Next Gen Financial,Can Help Ease the Burden of Paying for CollegeSaving for college takes some pre-planning and effort, but it’s not impossible. When you want tohelp your child by financing some oralltheir college expenses, you have many options. YourNextGen Financial InsuranceAgent can help you explore how life insurance solutions can help yougive your child the education you want them to have.To learn more and to request a quote, contact us today online .Use This Image on the website