02/11/2017
Saving for College-The Landscape of the 21st Century
More Americans are continuing education, in fact, one out of every five families consider education a priority over retirement. The average family will save more than $48,367 according to a poll conducted by Gallup and Sallie Mae, a for-profit educational company. Saving is now a requirement as the world is connecting. Having a high school diploma is not sufficient, and the new American landscape is education first. Competing in today's job market requires an upper hand; therefore, continuing college is the best to meet new corporate demands and challenges.
Not having a degree and attempting to climb the corporate leader just by merits alone are thoughts from the past. More than sixty percent of American families are saving for the children’s future. The other 28 percent are unaware on how to save for college, and the remaining 18 percent do not know which college saving plan is the best for their family. These facts are staggering; however, there is a bright light at the end of the tunnel, and Education II Careers (EIIC) would like to bridge the gap with a brief synopsis of some of those college saving plan options.
Using retirement money does place a great dilemma on middle class families because this positions them at risk without having college tax advantages such as 529 college saving plans. Sallie Mae reported that 24 percent of households using retirement accounts are making costly mistakes, which can be irreversible and may jeopardize your children's educational future. EIIC would like to educate parents on alternative solutions such as Education Plans. Consider the average college student attending a traditional four-year in-state university.
The average cost is $11,976 per academic year and an in-state private college averaging $26,070 per academic year. Therefore, the importance of saving for education is high on must adults’ agenda. Continuing college is necessary for the millennial generation because of globalization and other technological advancements that having a high school diploma does not prepare students for in the coming years.
When researching for the most advantageous education plan, it is important to start with the 529 Plans. However, some other alternatives are available for consideration such as the Uniform Transfer Minor Act (UTMA)/Uniform Gift Minor Act (UGMA), Minor’s Accounts, Demand Trusts, Series EE Trusts, Life Bonds, District Insurance, and Coverdell Education Savings Account (ESA). For more information regarding these plans, please consult a professional adviser to ensure the plan is the best fit for your family’s educational goals. For more details, please contact Education II Careers. https://www.educationto.careers/home.html
American parents say saving for college as important as saving for retirement: Sallie mae. (2010, Dec 13). The Hispanic Outlook in Higher Education, 21, 39. Retrieved from http://search.proquest.com/docview/822465079?accountid=35812