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Best options to save for your child’s education

With increasingly high fee rates for a child’s education, most parents are constantly worried about being able to afford the tuition fees in the future. But, the government has various plans chalked out for such parents where they definitely can save up and ensure that their child gets to experience the ideal education in the future.

What are the 529 plans?
529 college plans are the best way to save up for your child’s education while earning tax benefits on the way.

Best options to save for your child’s education

Once you have a child, find which plan is the most suitable for you and which one is offered by your state so that you can start planning on funding your child’s future education. With increasing fares and high tuition fees, it only makes sense to have a plan in place so that you are not in for a sudden shock of funding.

What are prepaid tuition plans?
While the 529 college plans are all the rage when it comes to planning for your child’s education, some parents may even like what is offered by the prepaid tuition plans. What happens in a plan like this is that you can opt for paying the pre-determined price of tuition credits if you are sure that your child is going to attend an in-state public university in the future. Depending on how much you can afford, this is a plan you can opt for as well.

What are UGMA and UTMA Accounts?
UGMA actually stands for Uniform Gifts to Minors Act and UTMA stands for Uniform Transfers to Minors Act. Both of these accounts are used by many parents for saving up for their child’s education in the future. This is basically a provision for you to save up money and the child can use it later for his/her own education. However, the only issue with this particular scheme is that you do not have much control over how this money is used since the child has the authority on this particular account.

You can consult your financial advisor and also figure out over the first 10-12 years how academically inclined your child is and how much would you need to save up in order to support him/her with their education in the future. With a rough idea in mind, you can take advantage of the best schemes and then decide which one to opt for.

Disclaimer:

The content provided on our blog site traverses numerous categories, offering readers valuable and practical information. Readers can use the editorial team’s research and data to gain more insights into their topics of interest. However, they are requested not to treat the articles as conclusive. The website team cannot be held responsible for differences in data or inaccuracies found across other platforms. Please also note that the site might also miss out on various schemes and offers available that the readers may find more beneficial than the ones we cover.

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