Tips for Saving for College
As many as 600,000 foreign students apply for visas to attend a university or community college in the United States and, while tuition from an American university may be more expensive than Latin America, there are ways to save for higher education. Oscar Valencia, a financial advisor licensed in the state of Florida, shares tips on saving for college that you can start applying today:
Best time to start saving
People often ask when is the best time to start saving for college. Valencia insists on starting “as soon as possible. In fact, all these saving tools we have mentioned can be opened the moment the bay is born.” All that is needed to open these accounts is to have the child’s social security number.
Different saving options
Valencia explains that families and students have different options to manage these costs. He specifically mentions:
- Different savings plans
He also notes that public universities “have lower tuition fees, especially if you’re a resident the same state as the university you wish to attend.”
The 529 Plan & Florida Prepaid
This 529 savings plan allows families to put money aside for college. Oscar Valencia explains that one of the benefits of opening a 529 plan is that “money grows over time and you don’t have to pay taxes each year. And later if you withdraw the funds for education purposes, you won’t have to pay taxes either.”
For residents living in Florida, there’s also another option known as Florida Prepaid, a savings plan that operates in a similar fashion.
There are several benefits to having life insurance and one of these benefits includes saving for college. Oscar Valencia mentions an option known as “Cash Value”, a savings account similar to the ones shared above that grows over time. “We can, later on, use these saving for education or other needs,” Valencia says.
While tuition may be pricey, following these tips on saving for college will get you and your child on the right track for a college education. For more financial advice and information, contact Oscar Valencia at email@example.com with your questions and we will share them in our next video.
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