Wednesday, April 8, 2009
What if you don't plan for your kids' college
By Po-cheng Huang
With the unemployment rate hits the highest in 25 years, most students who just, and about to graduate from colleges to join the work force are facing enormous challenges not only to feed themselves, but they are also carrying the pressure of paying off their student loans. That is why it is important to plan ahead for college so that your children will not end up in a position where most college graduates are. For tax purposes, you can choose to buy qualified educational bonds to invest in, Stock is also a good option although is much riskier than bond. Treasury bills, muni bonds, different investment funds are also financial tools to grow your capital for future use. In order to achieve that goal, unnecessary expenses must be cut and you got to put away a good amount of money to save for your goal while still being able to support your daily expenses. If you are able to accomplish this, you are doing not only yourself a huge favor, you are also helping your next generation because they are free from debt and is more likely to do things they wish to, while on the other hand, if they are so in debt and unemployed in an economy like this, the kids will very likely come back to you for financial support. And that, is usually where things starts getting ugly.