Sending Kids To College
Being able to send your children to college is near the top of the wish list for most parents. A college education can open doors to many opportunities, and is increasingly necessary in today’s economy, but that diploma doesn’t come inexpensively.
There are no easy answers for many families but we can help! Let’s work together and put a savings plan together that offers the best combination of tax advantages, financial aid benefits, and flexibility, while meeting your overall investment needs. In the college savings game, all strategies are not created equal. Some of the best ways to save for college include:
- 529 College Savings Plans – There are two types of 529 plans-college savings plans and prepaid tuition plans. Both governed under Section 529 of the Internal Revenue Code, and very different college savings vehicles.
- Coverdell ESAs – A Coverdell education savings account is a tax-advantaged education savings vehicle that lets you save money for college, plus elementary and secondary school (K-12) at public, private or religious schools.
- Custodial Accounts – Allows your child to hold assets-under a designated custodian-that he or she ordinarily wouldn’t be allowed to hold in his or her own name. The assets can be used for anything that benefits the child.
- U.S. Savings Bonds – Series EE and Series I bonds are types of savings bonds issued by the federal government that offer a special tax benefit for college savers.
You’ll want to put aside as much money as you can in your child’s college fund. The more money you save now, the less you or your child will need to borrow later. It’s never too late to get started, schedule an appointment today 860-572-4040.
Check Out The Chelsea Groton* Scholarship Program
Each year, Chelsea Groton awards $500 scholarships to 16 outstanding high school students to help them realize their dreams of higher education. The Chelsea Groton Scholarship recognizes students across New London County for their scholastic achievement and community involvement. Students should visit their school guidance office to learn more about the Bank’s scholarship program and to pick up an application.
Contact Miria Toth with any questions about the scholarship program at 860-448-4236 or email.
*Disclaimer: The Chelsea Groton Scholarship Program is offered through Chelsea Groton Bank and is not affiliated with Chelsea Groton Financial Services or Infinex Investments, Inc .
We do not provide tax advice. Consult your tax advisor.