College Costs Looming Large?

Texas CPAs Offer Tips on Paying for College

Whether you’re still reading Mother Goose to little ones or have teenagers preparing to leave the nest, the issue of college savings may loom large.

Texas CPAs encourage parents to check out several tax-advantaged college savings vehicles like Section 529 plans. These state savings plans allow your money to grow tax-deferred in an individual investment account. In fact, Texas has a529 plan touting broader investment options and more competitive fees.

According to Texas Society of Certified Public Accountants (TSCPA) immediate-past Chairman James A. Smith, it’s a good idea to start college savings funds when your kids are young.

“Saving early and often is definitely a smart move. 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 like taking the Hope tax credit and asking about tuition discounts,” said Smith.

No matter how many educations 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 low-interest loans are available for students, but third parties aren’t going to fund your retirement,” said Smith.