Audio report for radio: Finding money to pay for college
Tuesday, July 19, 2005
MANHATTAN -- College can take a big chunk out of anyone's bank account, and it's important for future college students and their families to begin as early as possible to prepare. Joyce Cantrell, instructor in personal financial planning at Kansas State University's School of Family Studies and Human Services, has suggestions for those with limited incomes, or for those who do not save money easily.
The parents of a child born today can expect to pay over $150,000 for that child's college education. Cantrell has tips on ways parents can plan for their child's post secondary education.
One of the best ways for people who have difficulty saving or whose resources are limited are Double E savings bonds -- they are payroll deduction, and relatively painless.
"If you pay yourself first, the money comes straight from your paycheck where you immediately deposit it into some type of account and you never see it," Cantrell says.
Cantrell says another good way to invest for a college education is through a Section 529 plan. This is a tax-deferred way to save for college which has additional tax incentives for Kansas taxpayers.