Ashley Temer is a Financial Representative with Northwestern Mutual who helps professionals, families, and business owners plan for financial security. She’s here for your “Money Minute.”
It’s never too soon to start planning a college savings strategy. You have several options and here’s what you need to know about the most popular ways to save.
The 529 Plan comes in two basic varieties
The tuition plan allows you to purchase college credits today that lockdown current tuition rates and are used in the future at a state school. With a college savings plan, you make contributions to the plan and chose from a variety of investment options. These have the potential to grow and compound for many years before you make withdrawals.
Coverdell Education Savings Accounts, which are opened through a financial institution, permits withdrawals for any qualified expense such as tuition, books, uniforms, and supplies. The Uniform Gift to Minors Act and the Uniform Transfer to Minos Act are not specifically designed for college savings but offer some unique qualities. The assets in the account can be used for anything. There are zero penalties for withdrawing funds for non-educational expenses.