The College Fund Stimulus Package
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In America, President Bush and the Congress have decided to boost the economy with a tax rebate to all tax-paying Americans. While the details of the “economic stimulus package” aren’t finalized yet, the current amounts bandied in range from $600 per individual, $1200 for a two-parent household, and an additional $600 for each child.
This means that a household with two parent and two children would receive $2400.
However, before you decide that the part of the economy that really needs stimulating is the big-screen T.V. section of Wal-Mart, this is the perfect opportunity to put that money to a very good use.
Why not take this opportunity to start a college fund for your children?
When most people think of a college fund, they think of a bank account. There is a much better option available to residents of most states these days…state college savings plans.
These plans allow you to contribute monthly (with the monthly contribution determined by several factors, including what you would like the final amount to be and how long it will be until you need it), and contributions are tax-free. These plans also lock in the price of college tuition at today’s rates.
That means that you can lock your toddler’s college tuition price in now, and even if it increases by 1000% before your child reaches college age, you won’t have to pay that amount. To put it mildly, this is a fantastic deal.
To learn more about college savings plans visit the information page Sallie Mae has set up here; for a list of available savings plans you can take a look at this .pdf file.
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