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If you have youngsters, you might find often times find yourself worrying about how you’ll be able to afford to send them to college. The direct cost of programs is on the surge and lots of households have difficulty balancing daily living expenditures with putting money away for retirement while keeping money for a youngster's college education. Recently, a study by Sallie Mae was released titled "How America Saves For College". This report brings up some worrying trends. While the record does display that families are still putting money away for college, it finds the trend that quite a few of those family members who claim they are saving for college also admit that they are doing so via their funds for retirement. In fact, one-third of the more than 1,600 respondents suggest that they meant to make use of these cost savings for higher education. The other two-thirds say that they would utilize their retirement savings to spend on college, but only if it was absolutely necessary. However, this approach might not be the best idea. Paying into an education fund along with cash withdrawn from a retirement account can easily lead to big problems down the road. Initially, the funds that are withdrawn can count as income, which is taxed. Then add that added earnings to your eligibility for financial aid and you might have too much to even get the additional economic help. So, what should you do? Make conserving money a habit. It’s just as simple as that. As a matter of fact, the Sallie Mae research revealed seventy percent of households with an established objective to save money for college are certain they will save ten percent of future university expenses. Below are a handful of tips to increase your savings for college: 1. Set up a 529-college cost savings plan. A 529-college savings strategy enables you to conserve cash for university and then withdraw the funds for many college expenses tax-free. 2. Make cost savings automated, utilizing electronic fund transfers to guarantee the cash goes into a savings account regularly. 3. Increase the amount you put aside every year. A little increase will make a big difference over time. This long-term strategy will help you save up for college without jeopardizing your retirement fund. This is a good news for the entire household. For more information on finance and for alternatives to traditional savings plans, please visit http://annuityratesinstantly.com.
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