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The Rising Demand for College Planning
Higher education is one of the greatest investments you can make in your child’s future, but it’s also one of the most expensive. With tuition costs increasing yearly, families are finding it increasingly difficult to save enough to ensure their children can attend the colleges of their choice without burdening them with debt. The College Board reports that the average cost of a four-year public college education exceeds $25,000 annually, while private institutions charge upwards of $50,000.
The gift of education is the foundation for a lifetime of opportunity, but securing that foundation requires thoughtful planning.
Dr. Hillary Aza
Understanding the Problem
Many families are unprepared for the high costs associated with college education. Without a clear savings strategy, parents often resort to expensive loans that can burden both themselves and their children for years to come.
Compounding this issue is the lack of financial literacy surrounding college savings options, leading many families to underutilize tax-advantaged tools like 529 plans or education-specific investment accounts.
The challenge becomes even more acute when families have multiple children, as balancing the cost of education with other financial priorities—like retirement savings—can feel impossible.
College savings plans, like 529 plans, offer a tax-advantaged way to save for education. Contributions to these plans grow tax-free, and withdrawals for qualified educational expenses, such as tuition, books, and housing, are also tax-free. Families can start saving early and benefit from the power of compound interest, significantly reducing the financial burden when college time arrives.
Another valuable tool is the Coverdell Education Savings Account (ESA), which also offers tax-free growth and allows for a broader range of eligible expenses, including K-12 education. By incorporating these tools into a well-structured financial plan, families can create a sustainable strategy to fund their children’s education.
How Veracity LD Can Help
At Veracity LD, we specialize in guiding families through the process of setting up and managing college savings plans. Our advisors work with you to evaluate your financial situation and recommend the best strategies for your unique needs.
We help you explore options like 529 plans, Coverdell ESAs, and other education savings tools to ensure your child’s future is secure. For instance, one of our clients, a young family with two toddlers, started a 529 plan with just $200 a month. Over the years, this small contribution grew into a fund large enough to cover tuition for both children, providing them with debt-free access to quality education.
Education is one of the greatest gifts you can give your child, and starting early can make all the difference. With the right tools and guidance, you can ensure that your family is prepared to meet the rising costs of education.
“The seeds of education you plant today will bear the fruits of success tomorrow.”
Contact Veracity LD today to explore college savings plans and take the first step toward securing your child’s future.
