I'm sure you've heard that the price of college tuition across the country has been steadily rising. More college students are graduating college with student loans they are struggling to pay back. Graduates are moving back in with their parents until they can secure a good paying job, and once they find that job, more of their salary is going towards paying back the student loans. Here are some ways your family can start saving for college before you attend the school of your choice:
Coverdell Education Savings Account (ESA) - At the time this blog post was written, your modified adjusted gross income needs to be less than $110,000 or 220,000 (filing jointly). Total annual contributions can't be more than $2,000. In addition to higher education expenses, this can also be applied to elementary and secondary education expenses. More information can be found by clicking the Coverdell Education Savings Account (ESA) link.
Qualified Tuition Program (QTP) - This program is commonly known as a 529 plan. There are no income restrictions. There is a limit to how much you can contribute - the contributions can not be more than the qualified education expenses. You can find a list of qualified expenses by clicking the Qualified Tuition Program (QTP) link.
Here are some books that go into detail on how to save for college:
The Best Way to Save for College: A Complete Guide to 529 Plans 2015-2016
The College Tuition Riddle: The Definitive Guide to Saving for Your Child's Education
College Secrets for Teens: Money Saving Ideas for the Pre-College Years
Disclaimer: The writer of this blog is not a financial expert. Prior to investing in any plan, talk with a financial expert or financial adviser about your options.