SOME OPTIONS BEING...RESP, HIGH INTEREST SAVINGS ACCOUNT? ETC.
2007-02-22 16:04:19 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
Best way to go for most people is with a coverdell IRA, formerly known as an Educational IRA. It allows you to invest in your child's future education tax free provided you don't exceed certain income limitations.
Further, the monies can be used for tutoring, boarding school, and many other things.
As for what to invest in, that'd take another message. Best route to go is with some long term growth/income investments. Best way to find those is to invest a little into education and learning how to invest.
The cost now will pay many handsome dividends in the future.
Please let me know if you have any questions!
2007-02-26 11:20:39 · answer #1 · answered by Yada Yada Yada 7 · 0⤊ 0⤋
The best way is to put a little money away every month. $50 or $100 or even $25. Just make it a habit to do so. Consistant and early is the key to success. Starting early means your money will "work" longer for you, through componding of interest( or dividend and capital gains) (This is true for retirement savings as well.)
As for where to save ... it depends on how long before he/she goes to college. If the child has many year like 5/6 years or more before his/her goes to school, then you can take more risk with the money and invest in stock mutual funds. Taking a higher risk might lead to a higher return than through savings account like a CD. You should call vanguard or fidelity or t. rowe price, just to name a few mutual fund companies. They offer a veriety of stock mutual funds. go to there website and get the phone numbers and talk to them for information on savings for education.
If you have under 5 years before the child goes to college, then you should be more conservative with your savings. In that case a CD from your local bank (or non-local bank) will be sufficient. You can shop around and ask for the differences in rates. You can also invest in a bond mutual funds, but that's a bit more riskier than CD.
Of course you can do a combination of the two and save more in the conservative investment as your child gets closer to college.
Good luck! Remember to start early!
2007-02-22 16:18:49 · answer #2 · answered by Gene 2 · 2⤊ 0⤋
Open a brokerage account at Zecco.
2007-02-22 18:56:02 · answer #3 · answered by Anonymous · 0⤊ 2⤋
work and only spend on necessities.
then when shes gone. u can spend for urself.
2007-02-22 16:07:34 · answer #4 · answered by Double A 2 · 0⤊ 1⤋