Are College Costs Causing Stress?
Texas CPAs Offer Tips on Paying for College
Whether you’re still reading Mother Goose to your toddler, or have teenagers preparing to leave the nest, the issue of college savings looms large for today’s families.
Texas CPAs encourage parents to check out several tax-advantaged college savings vehicles like Section 529 plans. This savings plan allows your money to grow tax-deferred in an individual investment account. In fact, Texas has a 529 plan touting broader investment options and more competitive fees.
According to Texas Society of Certified Public Accountants (TSCPA) Chairman, Kym Anderson, it’s a good idea to start college savings when your kids are young.
“Saving early and often is vitally important. However, even if college is right around the corner, don’t lose hope. There are financial steps you can take to ease the sticker shock such as using the Hope tax credit and asking about tuition discounts, to name a few,” said Anderson.
No matter how you plan to fund, or how soon the tuition bills will start arriving, Texas CPAs say it’s usually not a good idea to crack your retirement egg to foot college costs.
“Scholarships and a wide variety of low-interest loans are available for students, but third parties aren’t going to fund your retirement,” Anderson added.