How to Help Your Grandchild Pay for College Ep #14
As you prepare for your future and look toward retirement, you might be also considering how you can help your grandchildren take care of college costs. What are the options when it comes to paying for a family member’s college tuition? How do you determine which option is the best fit for your retirement plans?
While it’s a great privilege to go to college, the truth is most people don’t have the means to get there on their own these days. On this episode, you’ll hear as I break down the common ways that prudent investors like you are using to ensure their grandchildren have help for college - you don’t want to miss a minute of this informative episode!
You will want to hear this episode if you are interested in...
Common ways most people help their family members pay for college [1:15]
What is a Coverdell education savings account? [8:00]
How 529 plans work and how to understand them. [12:30]
Choosing the right plan for you. [14:00]
Closing thoughts [17:00]
Common ways to help your grandchildren pay for college
Chances are, you didn’t have much help from your grandparents when it came to paying for college - why are things different today? While there are a ton of answers to that question - the fact remains that most people need some type of assistance when it comes to paying for college in 2020. I’ve taken the time to collect the common ways most people help their grandchildren pay for college so you can see them in one place and make the right decision for your family.
Pay your grandchild’s tuition directly.
Offer your grandchild a loan.
Pay off your grandchild’s loan after they graduate.
Buy a U.S. savings bond.
Set up an irrevocable education trust.
Set up or contribute to a custodial account.
Contribute to a Coverdell education savings account
Open a 529 plan in your name.
Contribute to a 529 plan that has already been set up.
Which option is best for your family? What route are you more inclined to take? Have you learned about options that you’ve never heard of before? Make sure to check out the link in the resources section so you can go even further with this important topic!
Why it’s a good idea to use the 529 plan
There are some great options that are covered in my 9 ways to help your grandchild pay for college but I want to stress the fact that I like the options that use a 529 plan. Each person has to make the right decision for their family and their goals when it comes to their investments but I know that savvy consumers like you will use this information wisely. To learn more about helping your grandchild pay for college and to hear my expanded take on each of the ways mentioned, make sure to tune into this episode!