Today’s parents don’t need fancy stats and figures to know that college education is expensive. It is not surprising to know why parents fear tuition fee and other expenses for their child’s four year tenure in a private of public college.
Saving for one child’s college expenses can be a burden. But when you add multiple children to the mix, it becomes progressively harder to accomplish.
Most parents successfully manage to save a fixed amount to their savings fund for their children’s college years. But, if you have multiple children, things could get even more complicated. In 2017, the average tuition and fees for a private college was just above $32,000. This figure doesn’t include additional costs such as accommodation.
This is why the best way to support your children’s college education is to save as early as possible.
There are plenty of ways to save funds for managing college expenses of multiple kids. These include 529 plan college savings plan, Roth IRAs and education savings accounts. Make sure you assess all of the available college-savings options before you pick the right one for your kids.
Currently, 529 plans are the best options to open an account for each of your children, since parents are not permitted to withdraw the funds for individuals other than the beneficiary.
Why Asking For 529 Gifts Are Great Contributions
Parents looking forward to save enough funds for their college savings should not hesitate to ask for 529 gifts. There will many occasions throughout your child’s life when your family members or friends would gift them valuable items to him/her.
That’s why it makes perfect sense to ask relatives to contribute to your child’s 529 plans as Christmas, birthday or other achievements. Even though such monetary gifts alone do not over the entire cost of your child’s college education, they certainly go a long way.
Encourage your friends and family to replace toys and coupons with small contributions to your child’s 529 plans. There is no need to feel. People will actually feel more valued and important to help your kids accomplish their dreams.
That’s why discussing 529 plans with your close friends and family is crucial. Crowd funding is being used from medical expenses to vacations. So why not use this opportunity to support your children’s college fee?
It is also important treat each child’s savings uniquely. Parents who have multiple kids should focus on setting up as many 529 Plan accounts as the number of children they have. This way they can contribute a fixed amount to each plan.
Since many states allow parents to take a tax deduction for funds in each child's account, parents can also take tax breaks offered in their states.
But unless you have twins or triplets, you will end up funding each of these accounts, unequally.
The Gift of Education is the number one platform for 529 College Savings Plans to save for your children’s education. Let your family and friends contribute on every occasion or achievement of your child to help you build a solid savings fund.