College acceptance letter day: a moment every parent dreams of. The stress and anxiety of waiting are finally over, the hard work has paid off, and your kid has finally received the letter they’ve been waiting for. So your proud kid jumps up and down in excitement like a kangaroo and you feel as if you were on cloud nine! Congrats!
After hearing all the benefits of college savings, the most common question we hear from parents is:
“But what happens with my money if my child doesn’t go to college?”
Parents often mistakenly think their money will just “disappear” or will be difficult to reclaim if their child decides to become a dancer, sportsman, or a millennial Instagram influencer instead of going to college.
We want to clear this up–this is wrong! Your money will not disappear. Your money is always yours and is always accessible.
Let’s assume that your child decides that he or she wants to become the next Kylie Jenner and Instagram their way to fame and fortune rather than go to UCLA to study chemical engineering.
What are your options?
Parenthood significantly changes our lifestyle. This change begins the minute the pregnancy test is positive, which puts us in total shock and happiness, and continues to the moment when the child heads off to university. As parents, we have invested nearly two decades of our time, money, and love into this young person. It’s easy to feel disoriented when suddenly our back seat is empty and our child is in a whole new place. At the beginning, the sense of loss can feel unbearable but, after some time we can proudly enjoy it.
I remember when my neighbor Emma sent her son Leo to college. She told me, “Finally, we’re empty nesters! Now it’s all about my marriage, friendships, work, hobbies, and passions! It’s about what we’re going to do with the rest of our lives.”
As the days get longer and the sun shines a bit brighter, many families are getting ready to travel, go on vacations or start their summer grilling. Across the country, high school seniors are filling auditoriums to throw their caps in the air and say goodbye to the last four years of high school. With the end of of high school comes the beginning of college – and the costs that go with it. Many parents are looking for the best college saving tips to ensure a solid head-start.
A lot of people swear by their grandma’s secret chocolate chip cookie recipe – flour, butter, sugar, chocolate chips, and love – those ingredients combined somehow make the best cookies on the planet. That coupled with birthday cards and holidays at grandma’s and grandpa’s create some fantastic memories. In all, grandparents seem to be a constant fountain of gifts, hugs, kisses and love.
While most families associate 529 plans with college or university, few know that they can now be used for K-12 private education. The new tax law passed by Congress last year included a provision in which parents are now allowed to pay for private school education from kindergarten to twelfth grade. Under the new law, families can withdraw $10,000 per student per year to pay for tuition expenses at private elementary schools, high schools and parochial schools. Keep in mind though, the law only covers private institutions and only applies to tuition costs – it excludes things like books, laptops, or other expenses often covered by 529 plans.
Parents often have many questions about 529 Plans – what they are, how to use them, what their benefits are. We’ve covered all those topics in other posts here, but have not gone over some of the myths of the plans themselves. Here we outline five of the most popular myths of a 529 plan.
Sending children to college can be one of the most rewarding experiences of a parent’s life. The excitement of watching your son or daughter start a new journey, coupled with the promise of all the wonderful things they’re going to learn can bring immense joy. Knowing that the next few years will be a transformative experience, parents try to prepare for the road ahead as best they can. But let’s face it, the prospect can be a bit overwhelming. The cost of college has been rising steadily for decades. This is why parents need to know about the 529 plan!