Setting up a child college fund by Parents
When it comes to setting up a child’s college fund, many parents think they can’t save enough to make a difference, they won’t choose a smart investment, or it will come down to a choice between paying for college or retirement. It’s not about paying for everything — it’s about saving what you can. There is a smart way to save, affordably and conveniently, with the Michigan Education Savings Program (MESP).
The Cost of College Shouldn’t Keep You Up at Night
College tuition costs are far outpacing inflation, and this is a big concern for most parents. But there’s good news: MESP can help pay for these costs. If you have $25 and 15 minutes, you could open an account today. Since your account can grow tax deferred, you will potentially save more over time, so the sooner you start the better.
MESP Gives You More Choice
Choose from a variety of investment options that fit your timeline and investment goals, including enrollment year investment options, that automatically change as your loved one nears enrollment. Use the money at any state or private college, technical school, or community college that offers financial aid — even schools outside the US. Make qualified withdrawals free from tax not just on tuition, but certain room and board, books, computers and related technology expenses, equipment and supplies.
Don’t Choose Between College and Retirement
Many parents worry they will need to make a choice between retirement and their child’s education. They, understandably, feel making sure their child receives a college education should be the priority. In reality, retirement should be the priority, but you should save for both if possible. Don’t stress if you can’t pay for all of college, just start small and save steady. With MESP you can start for as little as $25 in a child’s college fund, and keep feeding your retirement nest egg. Also keep in mind there are many smart ways to reduce the cost of higher education before you even spend a dime.