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Easy Ways to Save for College

Saving for your child?s education is one of the greatest gifts you can give him or her in life. As entrance requirements to major educational institutions become stricter and the prices continue to rise at alarming rates, college education is something that children of tomorrow simply cannot do without if they want to further themselves in life. Experts suggest starting to save for college education from the child?s birth to avoid frantic savings in the last few years preceding college.

The easiest way to go about saving for college is by using a state 529 saving?s plan, as this shifts from stocks to bonds as the child nears college age. As long as you can prove that the money is used for college related purposes (such as tuition, lodging, etc.), earnings on 529 saving plans are tax-free. The one decision you will have to make is which 529 plan to use. Industry experts suggest that if you don?t have the time to do your homework about the different plans, simply choose the Utah Educational Savings Plan (found on the internet) where you will need to choose out of only five different options.

Experts also recommend that people check their local state tax laws regarding saving for education. 28 states in the US give tax deductions on local 529 saving plans. There are also several websites dedicated to finding out the right deals for people who are unsure about how to go about putting money away for college. Savingforcollege, for example, offers fair and objective advice about 529 plans and other forms of saving.