How to Pay for Your Child’s Tuition Using a 529 Savings Plan
Americans owe more than $1.7 trillion in student debt.
And if you’re like many current or potential parents, you want your kids to go to college without taking out massive loans.
But knowing how much to save and the best way to save it can be a daunting task for new parents who are already sleep deprived.
If you start early and use the right tools, your small monthly savings can turn into a debt-free college experience for your child.
The first tool you will need is a 529 college savings plan. traditional savings. Your 529 plan savings are often tax-deductible, can be invested while growing tax-free, and have low minimums, making it easy to get started.
CNBC has done the math, and we can tell you exactly how much you’ll need to save each month to send your child to college without burdening them with student loans. Watch this video for a full breakdown of your savings options and a case study on how much you’ll need to set aside to fully pay for your child’s college education.
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