When is the best time for college planning? It’s when your baby is born. Sounds funny but not if you’re faced with the amount needed to pay your child’s college fees. I know because my parents had to sell part of our land to make us finish our college degrees. We’re three! I had to commend them for the full-support, we were able to finish and are now doing good in our chosen careers.
With the economic situation going awry, we can never be sure how much tuition fees would cost when our baby turns 20. Or if we are still able to work that time…it pays to save up for your child’s future while you are employed and able.
There are a number of college plans to choose from and it has totally evolved from what I remember when my daughter was born, especially the well-known insurance company then that I almost avail for my daughter. They didn’t anticipate that college fees would ascend so they made use of the money invested by parents for their other ventures.
Browsing about, here are different college plans available in the US. I haven’t researched around here since Vienna offers free college for locals and scholars.
529 college savings plans. A tax-free plan and this one lets you pre-pay tuition in today’s dollars (sans inflation rate).
UGMA or Uniform Gifts to Minors Act. Same as 529 only pre-pay is not offered.
UGTA or Uniform Transfer to Minors Act account. Same as the UGMA account except this plan allows for the holding of additional assets such as property, royalties, and patents.
Whichever you choose for your child, do it now, as the ant saved for the rainy season early on than the grasshopper, so should we.
12 Comments
Good thing we have finished paying for the premiums of the college plan we have bought for Zyc. We, parents must always think of our children’s security and future.
If it weren’t for insurance, 2 of my sisters probably wouldn’t have finished college. College nowadays is not a joke. Even in a public or government school, expenses just keep creeping up on you!
Tuition fees just keep getting higher. I don’t know though if the quality is improving.
this is true. one should save the moment a kid is born. just make the company investing up to can be relied on. there were many companies that had gone bankrupt.
daughter gets to use part of her endowment plan, but, not enough to support her college studies:) we consider policy loan to support her “dream”. crossing our fingers:)
naiwan un link ko, hehe…here’s our dilemma:(
I am considering a educational plan for my future kids. It is really helpful to plan for the future than to be broke when they comes and give you pain in the head. This post will help future parents someday.
I remember a bank’s commercial before “mag-impok sa banko.” I planned on saving up for Una’s college fund as early as she turned one last year but with our current financial situation, hindi talaga kaya. Hopefully, after we are done with our car loan, kaya ng magtabi for her future.
We’re still looking for the best college plan for my son. We’re in Thailand and we’re still learning the language so it takes time looking for the best one. I asked one of my friend here and she said it’s not a problem coz the college offers students loan…wish we could settle this one soon…
Hope you can visit my Away from Home. I’m running a giveaway:)
My mom had a bad experience paying for my brother’s CAP. Wala din akong tiwala sa educ plans dito sa Pnas kaya ang gawa na lang namin, both my girls have their own Junior Savings Account. Siguro naman by the time magcollege na sila eh madami na yun haha!
I agree with you on that. Better just save money in the bank.
I am afraid to invest in college plans because you can never tell if the company you’ve invested on will be able to survive until it’s time for your kids to go to college, especially here in the Philippines, so my hubby and I just put in money in an account we never touch, not even on an emergency, for our children’s college education.. 😀
Nowadays, it’s hard to rely on educational plans because the company might close down.