3 Alternatives For Investing For Your Child’s Higher Education Costs

With higher education tuition increasing at double digit year over year percentages an effective saving plan for your kid’s education is becoming much more important than it has been before. Most families will discover that their future higher education costs will be much more than they have saved for their kid’s education. This leaves many kids to be faced with obtaining financial aid to pay for a portion of their college education. The goal of this article is to explore the pros and cons of 4 common investment options when saving for college. This article will also explore why some of these options are better than other when considering a portion of your kid’s education may be funded by financial aid.

529 College Savings Plan: – A 529 college savings plan is a fairly new investment option for college saving. It allows just about anyone to save for college. There is a long list of benefits of a 529 college savings plan, but perhaps the most important is that your earnings grow tax free if you use it for qualified education expenses. Additionally, the maximum amount you can contribute to a 529 plan can go as high as several hundred thousand dollars depending on your State. In the event you do not use the funds for college, you can still withdrawal your earnings, but you will have to pay taxes and a 10% penalty. The penalty will be waived if your child receives a scholarship, or your child becomes disable or dies.

529 plans can typically be purchased through a broker or mutual fund company, but a disadvantage is that investment choices can sometimes be limited. Since qualifying for financial aid is based on a calculation that considers your kids assets, another big benefit of a 529 college savings plan is that the money in the plan is classified as a parents assets so less that 6% of the value counts against your kid’s financial aid eligibility.

Uniform Gifts to Minors Act/Uniform Transfers to Minors Act

(UGMA/UTA Custodial Account): – The benefit of a UMGA/UTA Custodial Account is that there is no limit on the contribution and it is easy to set up at most financial institutions. However, the limitations far outweigh the benefits. The first limitation of a UMGA/UTA Custodial Account is that these types of accounts offer very little tax advantage. If your child is under 14, only the first $800 of income is tax free, the next $800 is taxed at your child’s tax rate and after that there is no tax benefit at all. The other big limitation is that the account has to be set up in your child’s name. As a result, if your child needs financial aid all of the assets will be reviewed at a 35% rate. Therefore, this type of account is not advisable for those who may need financial aid.

Coverdell Education Savings Account (CESA): – A Coverdell Education Savings Account is very similar to a 529 college savings plan. The main difference is that with a Coverdell Education Savings Account you can only contribute $2000 per child and to qualify your adjusted gross income must be less than $110,000 if single and less than $220,000 if married filing jointly. The account is classified as a parent’s asset so less that 6% of the value counts against your kid’s financial aid eligibility.

In the end, parents should consider planning for college to be a highly important process. The above 3 alternatives can make this process much more easy and financially sound.

About the author:
Jay Fran is a successful author and publisher at Motorcycle-Financing-Guide.com, a website that offers a wide selection of online motorcycle lenders providing online application facilities for motorbike – motorcycle loans or motorcycle refinancing.

July 31, 2008 · Filed Under Online Education

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Education Needs to Emphasize Soft Skills that Translate into Hard Cold Cash

No Child Left Behind mandates have school systems scrambling to improve teaching, update curriculum, improve teacher quality and analyze data between different populations just to name a few of the many actions each school is facing. Yet, given the recently released Nation’s Report Card, securing significant change is going to require some non-traditional solutions.

Maybe it is time for public education to take a lesson from corporate America who is just now also realizing the impact of soft skills on the bottom line. During the last two centuries, businesses focused on controlling their employees. The work environment was one of control where individual actions required a chain of approval that went vertically up, then vertically down. This type of management style produced excessive waste and failed to capitalize quickly when opportunities were presented.

According to annual Michigan State University’s national college employment survey, today’s knowledge worker must have the following skill sets:

Analytical ability

Communication including verbal and written

Decision Making

Higher Order Thinking Skills (HOTS)

Leadership both individual and group

Personal attributes including work ethics, flexibility, initiative and motivation

Problem Solving

Team Building

Time Management

Yet, looking at most curriculums the focus is on cognitive content specific to the academic disciplines. The presumption is that this knowledge and the supporting skill sets as mentioned above will easily transfer to the workplace. Unfortunately, American business owners know that this is a fallacy because of information that is retrieved from such surveys conducted by Michigan State and other organizations.

For example, American students spend 12 plus years learning how to read and write. Yet if communication is more non-verbal than verbal depending upon how much of Dr. Albert Mehrabrian’s research you believe, then most young people except for those in speech and debate have already been set up to fail because they don’t understand that effective communication extends far beyond reading and writing.

Time management is another great example. Many adults have issues with time management or rather with better self management since you can’t manage a constant that being time. However, the osmosis learning strategy once again rears its inefficient and ineffective head during the kindergarten through high school learning experience. Can you remember as a young student when you actually had a class on effective time management? In today’s classroom with the ever-expanding curriculum, would it not make more sense to actually instruct young people on such a valuable skill instead of leaving it to the osmosis learning strategy?

Developing and nurturing those critical soft skills are what employers know will translate into success for their employees and cold hard cash for them. If public education wants to be truly effective, then the leadership needs to get ahead of the ball and look at the desired end results. Practicing another 33 years of reform where nationally 17 year olds have not gained any reading improvement will absolutely remove us from being the number one world economic force.

About the author:
Leanne Hoagland-Smith, M.S. speaks nationally to student leadership and works with under performing schools to help them achieve world class status. If improving your school’s performance is a goal, then visit www.processspecialist.comor email info@processspecialist.com or call 219.759.5601.

July 30, 2008 · Filed Under Online Education

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How to Receive an Education and Training Online

It is not unusual for a person to grow apathetic toward his or her current job. Lack of stimulating work, low pay, and limited growth potential within an organization are all excellent reasons to seek out a way to make a change. One of the best, and easiest, ways to achieve this is to explore furthering your education and training online. This innovative and exciting method of personal and professional improvement has the benefit of allowing you to enhance your career opportunities by either earning a degree or by taking advantage of continuing education options. This is also an ideal option for you if you want to change your career entirely. Education and training can be sought online without interfering with work and family commitments.

In order to get that promotion you’ve been working so hard for, it’s often necessary to further your education and training. Doing so online allows you do achieve your full career potential at your own pace, without interfering with work. In many professions, such as pharmacy, it’s often required to stay up to date with new technologies and pertinent information. A convenient way to do this is to take your continuing education courses online. Some employers are even willing to pay for a portion or all tuition and fees. After all, investing money in their employees can provide long-term benefits for employers.

There are many advantages of choosing an online education and training facility if you wish to further your education and training. There is no need to live near or commute to a school or training facility when all classes can be attended and all coursework submitted online. Attending school online is a great option for those who might have misgivings about going to college as an older student or returning after many years. Furthering your education and training at an online school can make it easier to ease into the routine of class work and projects, an can reduce the stress of feeling the need to fit in with younger college students. Further, the course availability is often convenient for those who work full time and/or care for a family. Frequently, institutions offer evening and weekend sections of courses. It is also very appealing to “go to school” from the comforts of home.

The type of education and training available online is seemingly limitless. The entire spectrum of college degrees is available to a student, including Associate’s, Bachelor’s, and PhD degrees, as well as professional certificates. These degrees are available in many different fields, including Business, Social Sciences, Humanities, Mathematics, Liberal Arts, Fine Arts, and Healthcare programs. In addition to college diplomas, continuing education for professionals is available in many areas, including Healthcare programs, Business, and Information Technology.

Affording to further your education and training online is no different from doing so in a traditional face-to-face institution. Often, financial aid is available to students in the form of grants, loans, and scholarships. It is important to check with the individual institution of interest for requirements and guidelines. Also, many employers may be willing to pay for part or all of an employee’s continuing education. Investing in an employee’s future is also investing in the employer’s future.
The misconception of continuing your education and training online is that the experience might not be as enriching or legitimate as attending face-to-face classes at a traditional college or training facility. Programs offered online present the same opportunities for group work, independent study, and interpersonal communications as their traditional counterparts. In fact, continuing your education online might help to facilitate the learning process as well as develop time management and self-motivation skills. With the prevalence of the Internet and advancements such as teleconferencing in both education and the business world today, it is possible to come away from the experience not only with a degree, but also with greater knowledge and comfort with technology. Continuing your education and training online is a valuable, convenient, and flexible way to broaden your career opportunities.

About the author:
Learn the essential information for picking the right online degree course at Education and Training

July 29, 2008 · Filed Under Online Education